Tron’s price has been quite volatile on FTX. Long wicks extending above candlesticks on the short time frame charts have been registered by the altcoin, indicating that buyers have been trying to push up the price. However, most of their attempts seem to be futile, for Tron has dropped by more than 47% since 21:00 UTC. In the same time period, TRX was down by only 3.2% on Binance.
Around that time, the asset created a local high of $0.44 on FTX [right]. However, on other exchanges, Tron was trading with an extra zero of around $0.05830 [left]. Resultantly, the premium stood at 654.717%. At press time, the 15th-ranked crypto was priced at $0.232 on FTX, while it was trading at $0.056 on Binance, the world’s largest exchange.
The number of transactions executed on Tron, nonetheless, remain to be flat, indicating that the majority of market participants are currently exercising caution by not overindulging in the blockchain.
What about other Tron-related tokens?
The Sun Token (SUN) also was seen trading at a premium. When compared to Binance’s $0.00557 at press time, the asset was trading at a 441.661% inflated rate at $0.0301705 on FTX. On the former exchange, it dipped by 4.3% since 21:00, but on the latter, it was down by more than 16%.
JUST’s price, on the other hand, has remained quite flat on FTX over the past few minutes. Nevertheless, it was trading at a whopping 2383.94% premium on FTX when compared to KuCoin at press time.
Why the pump?
The said tokens started trading at such high prices, Justin Sun revealed that he was putting together a solution together with FTX to “initiate a pathway forward.” Post acknowledging that FTX’s ongoing liquidity crunch, despite short-term in nature, was harmful to the industry development and investors, he said that his team was working “around the clock” to “avert further deterioration.”
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Nevertheless, there are speculations doing rounds on social media that Justin Sun stepping forward to bail out the beleaguered exchange could merely be a “marketing stunt.”
In fact, at press time, other discrepancies were also noted. FTX recently announced that it had reached an agreement with Tron to establish a “special facility” to allow HODLers of tokens associated with Sun to swap assets from FTX 1:1 to external wallets.
Data analytics platform CryptoQuant’s CEO, however, bought to light that TRX reserve in FTX sharply post the announcement, likely indicating that investors, and maybe insiders, have started dumping their tokens to convert their premium paper gains to actual gains.
Nonetheless, it should be borne in mind that the inference is speculatory in nature and should be taken with a grain of salt. Meanwhile, FTX’s recent blog post cautioned users and said,
“Please note, these markets (TRX, BTT, JST, SUN, and HT) may experience high levels of volatility. Please ensure you understand the details of this arrangement and any associated risks before taking any actions.“