The crisis that is plaguing the FTX exchange, combined with important agreements, is leading to substandard valuations of Tron ecosystem tokens. What is going on, and what makes the same tokens on FTX nearly 2400% more expensive than on other exchanges?
TRX, JUST and SUN with huge premiums
Very dynamic movements appeared on coins linked to the Tron ecosystem. Assets such as TRX, JUST and SUN traded well above valuations seen on other leading exchanges.
TRX, the leading of the group of coins mentioned , reached a local peak of $0.44 on FTX on November 10. Other exchanges at the same time registered a valuation of $0.0583. Such a glaring difference in valuation translates into a direct premium of 645.717%.
The SUN token experienced a similar event. While its valuation on Binance was $0.00557, FTX offered a premium of 441.661%. As a result, its price on the platform, which is in crisis, was $0.0301705 at any given time.
However, the biggest difference was demonstrated by JUST. This coin on FTX traded at a premium of exactly 2383.94% over other exchanges.
Reasons for turmoil on Tron tokens
As it turns out, the reasons for such a reaction of exchange users were quite simple. They resulted from the arrangements that were made between representatives of the FTX exchange and the Tron network. An announcement on the matter appeared on Twitter:
“FTX announcement regarding Tron credit:
We are pleased to announce that we have reached an agreement with Tron to establish a special feature that allows TRX, BTT, JST, SUN and HT holders to exchange assets from FTX 1:1 to external wallets.”
As a result, there was a massive surge of Tron-linked tokens on FTX. The goal of speculators became to convert the assets into real profits. This was noted by Ki Young Ju, CEO of the popular blockchain analytics platform CryptoQuant. As he points out, moments after this announcement, TRX stocks on FTX were doubled:
FTX reacts again and appeals
Seeing such high volatility on Tron assets, FTX representatives decided to react and issued an appeal to users of their exchange. This one appeared on the blog and said:
“Please be aware that these markets (TRX, BTT, JST, SUN and HT) may experience high levels of volatility. Please make sure you understand the details of this arrangement and any associated risks before taking any action.”
On that note, we also recommend caution.