The irrational exuberance of login password traders over newly issued FTX customer debt (FUD) tokens resulted in price adjustments, objections, millions of transactions, and then decided to permanently destroy most of the token's supply.

FUD, which traded for as much as $113 earlier this week, changed hands on the password exchange Huobi for $65 on Tuesday morning. According to the data, on February 4, its opening price was only 50 cents.

According to Tron's FUD token, there is no relationship between the failed FTX exchange. DebtDAO indicates that when FTX determines specific debt, this will establish a large number of tokens and distribute additional tokens to FUD holders through airdrops, who will have the right of priority to claim the debt.

Last week, Justin Sun, a consultant around the world, tweeted the main reasons for the issuance of tokens. "the FUD token gives creditors a new level of liquidity, allowing them to buy and sell his FTX debt on open market operations," he said. He added that according to a contract provided by DebtDAO, the debt had been "identified" and amounted to tens of millions of dollars.

After FTX recovers the database or FTX announces the determination of the specific debt of creditors, DebtDAO will issue a second public issue according to the specific amount of the debt and airdrop materials to all FUD holders.

Bond tokens were issued last week by DebtDAO, which claims to be issued on behalf of FTX creditors. The initial supply and issuance of such tokens is 20 million FUD tokens, equivalent to 2 per cent of FTX debt, making each FUD token worth $1, equivalent to about $100m owed to FTX creditors.

DebtDAO tweeted last week: "as highly cost-effective and priority FTX debt on the Internet, FUD creditors have the right to give priority to what they consider to be their debt to FTX debt." Creditors with more than $10 million in FTX debt are also encouraged to contact DebtDAO to conduct a debt financial audit and issue so that the debt can be circulated in the secondary market.

DebtDAO used to think that FUD's investment real estate was less than $1. But Monday's soaring price means that the debt is worth more than $220 million based on FUD's total demand of $113,000,000. As a result, 18 million FUD tokens will be damaged on February 7th so that the valuation of the debt is in line with what DebtDAO thought was investment real estate.

After destruction, the total amount will be 2 million FUD, and the initial equivalent claim of US $1 FUD=1 will be changed to US $1 FUD=10, Herbie said in a statement on Tuesday, citing a proposal from DebtDAO.

Login password exchange FTX last year in the balance sheet differences were exposed by WJB left out in the cold. Founder Rob Bankman-Fried, who used to be a brand spokesman in the field of login passwords, is now facing a variety of fraud charges abroad along with other FTX executives.