Debt DAO released 20 million FUD tokens valued at $1 each. Once FTX validates the debt amount, it will issue an airdrop of extra tokens.
The first production and circulation of the bond token, according to Debt DAO, will be 20 million, or 20% of the announced FTX debt. Each FUD token is worth $1.
After FTX officially discloses the debt amount, Debt DAO will issue extra tokens according to the verified debt amount. The tokens will subsequently be dispersed to FUD holders through an airdrop, according to Debt DAO.
For instance, if FTX confirms a debt amount of $60 million, Debt DAO will issue an additional 40 million FUD tokens in addition to the original 20 million. According to Debt DAO’s guidelines, individuals holding 1 FUD before the secondary offering will get 2 FUDs from the airdrop.
Debt DAO observed: “As the most cost-efficient and prioritized FTX debt on the network, FUD creditors have the right of first refusal to enforce their claims on FTX debt.”
At the “right moment,” Debt DAO will issue contracts or notarized evidence of the debt. The DAO also asked FTX creditors holding more than $10 million in FTX debt to contact the DAO for a “debt audit and issuance” in order to facilitate secondary market circulation of the debt.
On February 5, the crypto market Huobi offered the FUD token for trade. Sun claims that FUD is a “high-quality FTX debt asset.” The exchange will permit token withdrawals on February 6.
Justin Sun, the creator of Tron, said that the FUD token would “benefit everyone in the crypto sphere.” According to Sun, the bond token would provide FTX creditors with a “new degree of liquidity” and allow them to exchange FTX debt on the open market. He added: This offers [FTX creditors] more control over their assets and creates new investment options.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.