On the 5th of February, the price of the token decreased by 7 times due to Huobi mentioning the FUD.
As per research, this token depicts FTX’s debt to supreme creditors. FTX has announced publicly that their debtors never issued tokens. Even then investors, at this point, are trading on Huobi at the rate of $13.1.
While DebtDAO believes that the token is a portrayal of the bonds issued by FTX users.
Effects of the FTX Bankruptcy
The bankruptcy of FTX impacted the crypto world and users in innumerable ways, such as creating confusion and frustration among traders.
Moreover, it has diminished the faith traders had in centralized systems because of which people have introduced several ways to survive.
Amongst the first solutions was the GTX exchange. This gave hope to investors for the recovery of their money. The exchange was able to collect around $25 million by the beginning of February.
This news was shared by the co-founder of BitMEX, known as Arthur Hayes. The CEOs of the company – Three Arrows Capital – are Zhu Su and Kyle Davies.
Their company is bankrupt, and it was one of the reasons for the bankruptcy situation. Apparently, they are involved in the ongoings regarding the bankruptcy circumstances.
There is the latest GTX exchange, now known as Open Exchange. Apparently, they are not interested to be associated with BlockFi, FTX, Celsius Network, Voyager Digital, etc.
The above-mentioned firms together hold a worth of $20 billion for the investor’s money that is trapped. We do not know whether this coming up at the same time as FUD is a coincidence or not.
Relevance of the FUD Token
The token is recognized as the one that is of the best quality for creditors during the FTX occasion. It has been issued by DebtDAO.
The token portrays the FTX debt and consists of tokens of approximately 20 million. The customers are given a discount of $1 per token.
According to Huobi, the cost is justifiable at $5. It is a depiction of the FTX debt, i.e. 2% of the 20 million. As per this information, the FTX debt can be estimated at around $20 to $100 million.
DebtDao might be able to provide FUD users with another option of FUD. Though, this depends on whether the fund is larger than the sum of $20 million.
This means they will have to implement this sooner or later. Due to all of this, people have been getting more confused and frustrated.
This, even, increased the cost of the token despite already being at an increased level of $100/FUD. At this point, the FUD tokens have been trading at the rate of $13.1 on Huobi.
Ambiguity Resulting in the Figures of FUD
Justin Sun is the CEO of Tron, which is a relatively inexpensive network. Recently, Sun is the center of attention of rumors in relevance to the crypto world.
Juan Benet is the creator of the InterPlanetary File System. He said that the white paper used by Tron is quite similar to already existing projects.
While this has been going on, people have witnessed similarities between Tron’s coin – USDD – and Terra’s coin – UST; the latter has experienced a downfall.
This, in turn, has resulted in increased bewilderment amongst traders. Last year, a Twitter user accused Tron of imitating ETH completely. He further accused the firm of copying Luna as well.
Following the major Tron event a few years ago, Sun altered the BitTorrent service to BitTorrent File System about two years ago.
The co-founder of ETH – Vitalik Buterin – accused Sun of being a dictator. He said that the new version of BitTorrent resembled a ‘zombie’.
Following the purchase of the Steemit app, even Steem reacted to it by using a soft fork.
This act resulted in Sun having restricted voting authority in Steem matters, which was their main goal. It then makes sense for Sun to be issuing FTX’s Debt tokens through DebtDAO.