Over the weekend, Tron’s native token (TRX) was being traded at a higher price of up to 17% on the recently compromised Poloniex exchange. This presented an opportunity for a profitable arbitrage trade.
The premium has now been reduced to about 7%, with TRX priced at $0.10561 on Binance and $0.11005 on Poloniex, according to data exchange data. Arbitrage trading involves traders buying an asset on one platform and selling it at a higher price on another.
Recently, Poloniex experienced a hack, losing over $114 million, leading to a temporary freeze on transactions. Despite this, Justin Sun, the founder of Tron, mentioned on Monday that withdrawals for TRX are available, even though the asset is being traded at a higher price on Poloniex.
Buying low-cost TRX on Binance to sell it at a higher price on Poloniex comes with a drawback. Some assets are currently restricted and cannot be withdrawn amid the hack.
Poloniex has stated that they are implementing a gradual release of withdrawals, starting with TRX.Bitcoin (BTC), ether (ETH), and tether (USDT) withdrawals will follow in the upcoming weeks, according to their phased approach.