A deal brokered between Tron and FTX will soon facilitate withdrawals on the struggling exchange.
On FTX, 1:1 withdrawals for digital assets including TRX, BTT, JST, SUN, and HT tokens will be enabled for external wallets following an agreement with Tron, FTX announced.
The deal is expected to go live at 18:30 UTC (1:30 p.m. EST) FTX said, and deposits will depend on factors including withdrawal demand and Tron’s funding capacity. Exact figures for future capital infusions will be determined on a weekly basis, and each week such injections are to occur at 14:00 UTC (9:00 a.m. EST).
FTX said it would disable Tron deposits for all users for the duration of the injections, constraining future deposits of the tokens to the Tron team itself.
“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,” said FTX, adding that the enabled markets “may experience high levels of volatility.”
FTX asked users to ensure they understand the arrangement with Tron and ramifications of any associated risks before they trade.
The collapse of FTX shocked crypto markets, following news that Binance would back out of a deal to save the sinking exchange, as the total crypto market cap dipped below $1 trillion, data from The Block Research show.
FTX faces likely bankruptcy if it cannot fill an $8 billion hole.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.