Tron-based tokens sell at 1200% premium as FTX users scramble to withdraw
Tron-based tokens such as JUST (JST) have surged as much as 1000% on FTX, as users scramble to find ways of extracting locked-up liquidity from the beleaguered exchange.
At the time of writing, Tron’s native token TRX is trading at roughly $0.33 on the FTX exchange, more than five times its current market price, according to CoinGecko.
Meanwhile, BitTorrent (BTT), JUST (JST) and the Sun Token (SUN) are trading on the exchange at premiums ranging from 525% to 1,196% compared to the market price. As it stands, the prices are extremely volatile and constantly changing.
The overinflation of Tron-related tokens comes after a Nov. 10 deal was struck which allows holders of assets such as TRX, BTT, JST, and SUN to withdraw funds.
This move has resulted in traders on FTX bidding up the price of Tron-related tokens to be able to recoup their locked funds. However, buying the tokens at the inflated price will likely lead to significant realized losses should they then sell it on any other exchange.
This means FTX customers get pennies on the dollar while Tron makes a ton of money.$TRX will be bid up on FTX as that is the only way to get out, but once people withdraw it they'll have to sell it at market price, taking a huge loss on their original holdings. https://t.co/NkbXatmxXR
FTX’s website says that it is currently unable to process withdrawals, with customers in the Bahamas where the company is based understood to be the only ones that can withdraw from the exchange.
Subsidiary FTX.US has also suggested that it could soon follow the same path by halting withdrawals.
It is also worth noting that FTX disabled new deposits of Tron-based assets as the withdrawals went live.
Related: FTX turmoil increases scrutiny of industry,
Read more on cointelegraph.com
