Tron-based tokens like JUST (JST) have increased by up to 1000% on FTX as users try to figure out how to get access to the exchange’s locked-up liquidity.
According to CoinGecko, Tron’s native token is currently trading at about $0.33 on the FTX exchange, more than five times its current market price.
The exchange trades BitTorrent (BTT), JST, and the Sun Token (SUN) at premiums ranging from 525% to 1,196% over the market price. The current state of the prices is huge volatility and rapid changes.
Following a deal reached on November 10 that permits owners of assets like TRX, BTT, JST, and SUN to withdraw money, there has been an overinflation of tokens related to Tron.
Due to this action, traders on FTX have bid up the price of Tron tokens to recover their locked funds. However, if they decide to sell the tokens on another exchange after purchasing them at the inflated price, they will probably incur sizable realized losses.
According to FTX’s website, it is understood that only customers in The Bahamas, where the company is based, can withdraw money from the exchange.
By stopping withdrawals, subsidiary FTX.US has also hinted that it might take the same course soon.
FTX disabled new deposits of assets based on Tron as the withdrawals went live, which is also essential to note.
On November 11, Twitter users like davidiach speculated that users of FTX might be able to avoid the Bahamian loophole in particular by paying a local to buy a low-cap asset on FTX, sell it to the overseas user, and then pay the Bahamian to “withdraw the profits” for them.
The Securities Commission of The Bahamas (SCB) froze the assets of FTX Digital Markets and “related parties” on November 10. It suspended the company’s registration in the nation, casting doubt on the viability of such.