Tron-based tokens such as JUST (JST) have soared as much as 1,000% on FTX as users scramble to find ways to extract locked-up liquidity from the embattled exchange.
At the time of writing this article, Tron’s native token (TRX) is trading at around $0.33 on the FTX exchange, more than five times its current market price, according to CoinGecko.
In the meantime, BitTorrent (BTT), JST, and Sun Token (SUN) are listed on the exchange at premiums ranging from 525% to 1,196% compared to the market price. Currently, prices are extremely volatile and constantly changing.
The overinflation of Tron-related tokens comes after a deal was struck on Nov. 10 that allows holders of assets like TRX, BTT, JST, and SUN to withdraw funds.
This move has caused FTX traders to drive up the price of Tron-related tokens in order to recover their locked funds.. However, buying the tokens at an inflated price will likely lead to significant losses should they be sold on any other exchange.
This means FTX customers get pennies on the dollar while Tron makes a ton of money.$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
— leoglisic.eth (@Leo_Glisic) November 10, 2022
This means that FTX clients will get pennies on the dollar while Tron will make a ton of money. TRX will go up on FTX as that is the only way to get the money out but once people withdraw it they will have to sell it at market price taking a huge loss on their original holdings.
withdrawals are limited
The FTX website says that it is currently unable to process withdrawalsand it is understood that customers in the Bahamas, where the company is based, are the only ones who can withdraw money from the exchange.
the subsidiary FTX.US has also suggested that it could soon follow suit and stop withdrawals.
It is also noteworthy that FTX disabled new Tron-based asset deposits when withdrawals went live.
Twitter users, such as davidiach on Nov 11, have pondered the possibility of FTX users circumventing the Bahamian loophole; the idea is to get a local citizen to buy a small-cap asset on FTX, dump it into the foreign user, and then get the Bahamian to “withdraw the proceeds” for him in exchange for a commission.
One way to withdraw large amounts of money now is:
1. Have a Bahamian buy a very low liquidity coin on FTX
2. Pump it hard and let the Bahamian dump that coin on you.
3. Have the Bahamian withdraw the profits and give you the money minus a fee. https://t.co/Nei3zT3HMd— David Iach (,) (@davidiach) November 10, 2022
One way to withdraw large amounts of money now is:
1. A Bahamian buying a very illiquid coin on FTX
2. Pump it hard and let the Bahamian dump that coin for you.
3. Have the Bahamian withdraw the winnings and give you the money for a commission.
Nevertheless, the viability of such appears to be in doubt, given that the Securities Commission of the Bahamas (SCB) froze the assets of FTX Digital Markets and “related parties” on November 10 and suspended the firm’s registration in the country.
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