TRON-based tokens such as JUST (JST) surge 1000% on FTX, with users scrambling to find ways to extract locked-up liquidity from the beleaguered exchange .
At the time of writing, Tron’s native token TRX is trading at around $0.33 on the FTX exchange, more than five times its current market price, according to CoinGecko.
BitTorrent (BTT), JUST (JST), and Sun Token (SUN), on the other hand, are trading on exchanges at premiums ranging from 525% to 1,196% compared to market prices. As it stands, prices are very volatile and constantly changing.
Excessive inflation of Tron-related tokens comes after the November 10th deal that allowed owners of assets such as TRX, BTT, JST and SUN to withdraw their funds.
The move allowed FTX traders to raise the price of Tron-related tokens to regain their locked funds. However, buying tokens at inflated prices can lead to significant realized losses if subsequently sold on other exchanges.
This means that FTX customers make pennies on a dollar and Tron makes big bucks.$TRX It’s the only way out, so it’s bid on FTX, but when people withdraw it, they have to sell it at the market price, and they take a big loss on their original holdings. https://t. co/NkbXatmxXR
— leoglisic.eth (@Leo_Glisic) November 10, 2022
Withdrawal restrictions
According to FTX’s website, it is currently understood that withdrawals cannot be processed and that only customers in the Bahamas, where the company is based, can withdraw from the exchange.
Subsidiary FTX.US has also suggested it could follow the same path by halting its exit.
It’s also worth noting that FTX has disabled new deposits for Tron-based assets since withdrawals have started.
Related: FTX turmoil adds much-needed industry scrutiny to institutional investors
Twitter users such as @davidiach on Nov. 11 think FTX users may be able to bypass the loophole in the Bahamas. In particular, have a local citizen buy a low-cap asset on her FTX and dump it on an overseas user so the Bahamian can “withdraw the profits” for a fee.
Currently, one way to withdraw large sums of money is:
1. Let Bahamians buy very illiquid coins on FTX
2. Pump hard to make the Bahamian toss the coin.
3. Have the Bahamians withdraw their profits and give you the money minus the fees. https://t.co/Nei3zT3HMd— David Iach (,) (@davidiach) November 10, 2022
However, given that the Bahamas Securities Commission (BSC) reportedly froze the assets of FTX Digital Markets (FDM) and “related parties” on November 10, suspending the company’s registration in the Bahamas. , the feasibility of which seems questionable.
