Tron-based tokens like JUST (JST) are up as much as 1000% on FTX as users scramble to find ways to extract blocked liquidity from the troubled exchange.
At the time of writing, Tron’s native token TRX is trading at around $0.33 on the FTX exchange, more than five times its current market price, according to CoinGecko.
Meanwhile, BitTorrent (BTT), JUST (JST) and the Sun Token (SUN) are trading on the exchange at premiums ranging from 525% to 1,196% compared to the market price. As it stands, prices are extremely volatile and constantly changing.
The overinflation of Tron-related tokens comes after an agreement was struck on Nov. 10 that allows holders of assets like TRX, BTT, JST, and SUN to withdraw funds.
This move has resulted in traders on FTX increasing the price of Tron-related tokens in order to be able to recover their locked funds. However, buying the tokens at the inflated price will likely result in significant realized losses should they then sell them on another exchange.
That means FTX clients get pennies on the dollar while Tron makes a ton of money.$TRX is bid on FTX as that is the only way to get out but once people withdraw it they have to sell it at the market price which means a huge loss on their original holdings. https://t.co/NkbXatmxXR
— leoglisic.eth (@Leo_Glisic) November 10, 2022
Limited withdrawals
FTX’s website states that it is currently unable to process withdrawals as customers in the Bahamas, where the company is based, are the only ones able to withdraw from the exchange.
Subsidiary FTX.US has also hinted that it may soon follow the same path by halting withdrawals.
It’s also worth noting that FTX disabled new deposits from Tron-based assets when withdrawals went live.
Related: The FTX turmoil adds to the industry scrutiny institutional investors have been waiting for
Twitter users like @davidiach on Nov 11 have mused that FTX users could potentially bypass the Bahamian loophole, specifically by getting a local citizen to buy a low-cap asset on FTX, dumping it on the foreign user and then the Bahamians get to “take the profits” from them for a fee.
One way to withdraw large amounts of money now is to:
1. Have a Bahamian buy a very low liquidity coin on FTX
2. Pump it hard and let the Bahamian toss that coin at you.
3. Have the Bahamian withdraw the winnings and give you the money minus a fee. https://t.co/Nei3zT3HMd— David Iach (,) (@davidiach) November 10, 2022
However, the feasibility seems in doubt as on November 10 the Securities Commission of The Bahamas (SCB) froze the assets of FTX Digital Markets (FDM) and “related parties” and suspended the company’s registration in the country.