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.

Limited withdrawals

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, something institutional investors have been waiting for

Twitter users such as @davidiach on Nov. 11 have mused that FTX users could potentially get around the Bahamian loophole in particular by getting a local citizen to buy a low-cap asset on FTX, have them dump it on the overseas user and then get the Bahamian to ”withdraw the profits” for them for a fee. 

However the feasibility of such appears to be in doubt, given that the Securities Commission of The Bahamas (SCB) froze the assets of FTX Digital Markets (FDM) and “related parties” on Nov. 10 and suspended the firm’s registration in the country.

Source: Read Full Article