Layer by Layer: Tron Takes Advantage of FTX Fiasco

The collapse of crypto exchange FTX and its associated trading firm Alameda Research in early November was one of the most destructive events in the history of crypto, and the effects of the fallout continue to percolate throughout the industry. Amongst the laundry list of shocking events in the days leading up to the FTX’s eventual bankruptcy, one of the more unexpected twists was the announcement on November 10th that FTX users would be able to withdraw assets native to the Tron network in a hastily established deal with Tron. Given that withdrawals from the exchange had already been paused at that point, FTX’s special agreement with the Tron team thrust the L1 network into the center of attention as users began to heavily consider swapping their FTX holdings for Tron assets. 

However, the deal was not as simple as it initially appeared for the panicked users hoping to recoup their frozen capital. As news spread of this withdrawal loophole, FTX users began to rapidly buy Tron assets, including TRX, BTT, JST, SUN, and HT, in significant amounts, driving their prices far above their market value on other exchanges.