On Friday, debtors who control FTX’s official Twitter account warned the community to “be alert to scams by entities claiming to be affiliated with FTX.” They also noted that neither FTX debtors nor any entities related to the company have issued IOU crypto assets or “debt tokens.” The alert comes as a token called “FUD (FTX User’s Debt)” has been circulating on the Tron blockchain and is listed on Huobi.
FTX debtors take advantage of the official Twitter account to inform the community
FTX debtors who control the official FTX Twitter account are warning the community about entities claiming to be associated with the now-defunct cryptocurrency exchange. The company filed for Chapter 11 bankruptcy, and the restructuring team and debtors use FTX’s official Twitter account often to inform the community of updates. On February 17, 2023, the debtors issued a warningindicating that the bankrupt company has not issued any debt tokens.
“FTX debtors remind interested parties to be alert to scams by entities claiming to be affiliated with FTX,” the bankrupt exchange’s official Twitter account said on Friday. “FTX debtors have not issued any debt tokens and such offers are not authorized.”
FUD Token Circulating on Tron Blockchain, Listed on Huobi
As the exchange’s restructuring team and debtors warn the community about unofficial tokens, a cryptocurrency issued on the Tron blockchain called FUD, or FTX User’s Debt, has been making the rounds. Some information Information about the coin is available at coingecko.com and as of February 18, 2023, it is trading at prices between $15.05 and $16.88 per unit. On February 6, 2023, Huobi Announced which had listed FUD, with an initial offer of 20 million.
The ad also states that the “debt” decided to destroy 18 million FUD. Tron founder Justin Sun. discussed the project in detail on February 4, 2023, noting that the “bond token represents the high-quality FTX debt asset and is set to benefit everyone in the crypto world.” Coingecko.com does not list a circulating supply for the FUD token, and Tronscan shows that there are currently 2,000,000 FUD tokens. Of this supply, 1,999,966 are hosted on Huobi, and there are only four unique holders, according to the Tron explorer.
According to Coingecko.com, Huobi is also the most active exchange and in the last 24 hours, FUD has recorded a trading volume of $213,072, mostly paired against tether (USDT). FUD reached an all-time high of $73.97 per unit on February 7, 2023, the day after it was listed, and has since fallen 78%. The warning issued Friday by FTX debtors and the official FTX Twitter account does not mention any specific token by name. It simply provides the link to the web portal where people can obtain information about the bankruptcy and restructuring process at kroll.com.
What do you think of FTX’s warning about unofficial “debt tokens” and the recently released FUD token? Let us know what you think about this topic in the comments section below.
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