The Tron (TRX) ecosystem has granted a credit facility to FTX to provide a selection of tokens for investors to exit the platform. This makeshift solution will unfortunately require a financial sacrifice, due to the decorrelation of these assets on FTX compared to their real value.
Tron offers a way out for FTX users
FTX announced at the end of the day an agreement with the Tron ecosystem (TRX), in order to allow users to withdraw their funds, at least in part.
The following tokens will be made available to FTX through a credit facility to unlock withdrawals :
- excl. tax.
This measure has been active since 7:30 p.m. Paris time and these assets will be replenished at regular intervals to allow everyone to drain their funds as they go.
Be careful however, it is clearly specified that the bridge put in place will allow a transfer of these tokens to external wallets. at a ratio of one to one. This means for example that: 1 TRX = 1 TRX, regardless of the price at which it was purchased on FTX.
It is therefore an important parameter to take into account, because in this case, the price of TRX on FTX is completely decorrelated from the real value of the asset. And for good reason, while the price of the token is around 0.058 dollars at the time of writing these lines, it is trading at more than 34 cents on FTX:
TRX price on the FTX platform
This stems from the fact that already before the official announcement, it was possible to drip funds from FTX to the Tron ecosystemwhich caused many investors to convert their holdings into TRX to leave the platform.
But such a practice is not without danger, because proceeding in this way to go to Binance for example, would amount to agreeing to divide its capital by nearly 6 at current prices. It is then up to everyone to make the choice deemed appropriate.
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A freeze on deposits on the platform
If we used the TRX for the previous example, this is valid for all the tokens concerned by the credit facility that Tron granted to FTX. An investor who does not want to take the risk of waiting for a possible real release of all the funds, will unfortunately have to take a heavy devaluation of its assets to be able to leave the ship.
To limit this exit door to only people who really need it, FTX has frozen all deposits on its platform. Thus, this prevents carrying out arbitrage operations.
The only entries that are now allowed on FTX are deposits made by the Tron teams themselves.
The initial budget for this operation is $13 million. and supplies will be made every week according to a schedule that will be communicated later.
At this time we are unable to say if and when all withdrawals will be open again. In the meantime, investors who placed their trust in FTX have this alternative solution if they wish, but which nevertheless requires a difficult choice to accept.
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Source: FTX, TradingView, Image: LinkedIn
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