JUST (JST), a cryptocurrency based on the Tron network has experienced a major climb in trading value in recent trading sessions.
JST Jumps Almost 1000%
According to the price movement data of JST, it has recorded a 1000% surge in value. This has happened as the users on FTX are eager to find ways to extract the liquidities locked up on the troubled exchange.
At the time of writing, the trading value of Tron (TRON), the native token on the Tron network is trading at almost $0.33. However, this is the trading price of the asset on the FTX exchange.
Compared to the general crypto market, TRON’s value on the FTX exchange is five times higher. This information has been confirmed by CoinGecko.
Other tokens powered by the Tron network such as the Sun Token (SUN) and BitTorrent (BTT) have also experienced very strong rallies.
The data gathered by CoinGecko from the FTX exchange shows that both SUN and BTT are trading at their premium ranges. The values of both assets have surged between the ranges of 525% and 1196%.
As the rallies of these assets are powered by troubled investors, their volatilities are off the charts. Due to the constant movement of investors on the FTX exchange, these assets are facing high volatility.
Reason behind Overinflation
The reason behind the overinflation has been attributed to the recent deal that was struck with the Tron network.
The deal allows the FTX users and the holders of SUN, JST, BTT, and TRX to carry out withdrawals for their funds. Therefore, the investors are converting their FTX tokens to these tokens.
Due to the strong buying interest of the investors in these tokens, their volatilities and inflations have continued climbing.
The aggressive buying of the investors on the FTX exchange is considered as a desperate move that may not go well with them.
The investors must consider that they are buying the mentioned crypto at very inflated rates on the FTX exchange. However, their actual market value is much lower than their inflated prices on the exchange.
After buying these tokens from FTX and moving them over to a different exchange or trading platform, the values of these assets would drop tremendously.
This would mean that the investors would be facing great losses in their investments.
FTX is not the only entity that has reportedly halted the withdrawals. Other subsidiaries of FTX are also throwing hints that they may halt the withdrawal access for the users.
Among these entities is FTX US, which has indicated that it may halt the withdrawal service for the users.