TRX Surges Over 600% Following Justin Sun’s Deal With FTX
November 15 2022 - 6:00PM
NEWSBTC
Tron’s native token TRX has been seeing significant upside on the
FTX exchange since the announcement of a potential deal that would
allow users to withdraw funds. This deal is one of the only ones
that have gone into effect since FTX began experiencing issues and
it seems users are already taking advantage of it. However, it is
not all rosy as users begin to notice the downside to this. TRX
Price Explodes On FTX TRX token is already up more than 500% on the
FTX crypto exchange over the last week on the FTX exchange. Tron
founder Justin Sun had seemingly worked out an agreement with the
troubled exchange to allow users to swap their crypto currently
stuck on the platform for TRX tokens and then withdraw it. Related
Reading: XRP Price Rallies 15%, Why Ripple Could Outperform Bitcoin
and Ethereum This would obviously make it possible for users to
swap digital assets such as bitcoin, ethereum, etc, to TRX, and
then proceed to withdraw it, making it possible for them to
withdraw previously stuck funds from FTX. It has naturally become a
popular option for FTX users, causing the price of the digital
asset to balloon on the exchange. In just 24 hours following the
announcement, TRX’s price was already up significantly. While the
token’s price remained relatively low on all other exchanges, it
had traded to a high of $0.43 on the FTX exchange. Compared to the
$0.05 price mark that is the case across all other exchanges, it is
trading at a 600% premium on FTX. TRX price spikes on FTX | Source:
TRXUSD on TradingView.com There has been some fluctuation in the
price since the token hit this new high on the platform. However,
the price still remains high at $0.43 at the time of writing,
with trading volumes already exceeding $630 million in a 24-hour
timeframe. Not A Good Deal At first, converting digital assets to
TRX on the FTX exchange in order to withdraw looked like a good
idea, but that only lasted as long as prices on the exchange
correlated with the broader crypto market. As the price of TRX
inflated on the FTX exchange, the value that users were getting
when they swapped their tokens quickly plummeted. With TRX being
500% above market price on FTX, it means that the exchange’s users
would only be getting about 20 cents on the dollar when they swap.
This is because after withdrawing TRX from FTX, they would still
have to swap the tokens at current market prices. To put this
in perspective, say someone has $10,000 worth of bitcoin and
swapped it to TRX at $0.43 (current prices), they would get around
38,570 TRX. When they withdraw and move to other exchanges for
sale, taking the current price on Coinmarketcap of $0.05, they
would have only $1,162 after selling. This translates to roughly 12
cents on the dollar. Related Reading: Bitcoin Shows Strength As
Price Holds Above $16,500; Is This A Bear Trap? Meanwhile, Tron is
making bank buying these digital assets for cheap as they are the
only ones allowed to transfer TRX into FTX. At the current rate,
they will be seeing millions of dollars in profit, presumably
giving FTX a healthy cut of the proceeds. What this shows is that
it is the end users that always get screwed over in times like
these. Even deals that seem to be “helpful” turns out just to be
another way to exploit users who are already in a vulnerable
position from the exchange’s collapse. Featured image from
Medium, chart from TradingView.com Follow Best Owie on Twitter for
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