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FTX Crisis. Is Tron Helping or Earning?

On October 10 FTX announced that it reached an agreement with Tron to allow the holders of Tron-based tokens to swap them from FTX to external wallets.

Justin Sun and FTX logo
Justin Sun and FTX logo

On October 10 FTX announced that it reached an agreement with Tron to allow the holders of Tron-based tokens to swap them from FTX to external wallets.

According to Bloomberg, Tron founder Justin Sun said that “Tron is prepared to provide billions of dollars in aid to FTX.com should it go ahead with a deal to rescue the ailing cryptocurrency exchange”.

The deal was signed and now the customers can withdraw TRX, BTT, JST, SUN, and HT from FTX 1:1 to external wallets, but their deposits are disabled. The only deposits available will be pre-announced weekly by Tron team:

“The exact capacity of the Tron Token facility will be determined weekly and future injections will occur at 14:00 UTC. The amount to be deposited will depend on a number of factors such as withdrawal demand and funding capacity to be provided by Tron. By providing a set schedule of the amount of tokens to be introduced into the market and the corresponding time, our goal is to provide more clarity to the market allowing users to make better informed decisions. Initially, $13,000,000 of assets will be deployed to facilitate such swaps,”- says FTX announcement on the company website.

Now FTX customers are buying these tokens craving to get the locked funds back. This enormously bids up the price of Tron-based tokens on FTX, but does not affect their market price (as of Oct. 12):

Token 

Market price (according to CoinGecko)

FTX price

TRX

$0.055388

$0.4355525

BTT

$0.000000708489

$0.00001286

JST

$0.055485

$1.752530

SUN

$0.00539069

$0.0322500

HT

$5.06

$32.7740

Taking into account the difference in prices, this whole deal seems a bit tricky, and we are not the only ones who think so:

There is no information about other offers to help FTX to overcome the crisis apart from Binance, which initially offered to buy the company. Later Binance withdrew the proposal.

To sum up, it is nice that Justin Sun gives a helping hand to FTX, but is it a real help for customers or just a smart market manipulation to earn money - that’s the question.

💡 Read more about the FTX crisis and its consequences:

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