TRX Premium Trading on Poloniex Lures Crypto Arbitrage Risk Takers

• Tron's Native Token's (TRX) Premium Trading on Recently Breached Poloniex
• Understanding Arbitrage Trade
• Aftermath of Poloniex's Hacking Incident
• Navigating the Trade-offs

Tron's Native Token's (TRX) Premium Trading on Recently Breached Poloniex

Over the past weekend, Tron's native token, TRX, was traded at a premium of up to 17% on the recently compromised Poloniex exchange. This situation created a potentially profitable arbitrage trade opportunity. However, the premium has since decreased to about 7%, with TRX trading at $0.10561 on Binance and $0.11005 on Poloniex, according to exchange data.

Understanding Arbitrage Trade

Arbitrage trade involves the purchase of an asset in one market and its simultaneous sale at a higher price in another market. This type of trading involves an element of counterparty risk as traders must ensure that capital can eventually flow between both markets.

Aftermath of Poloniex's Hacking Incident

Poloniex succumbed to a hacking incident last month that resulted in a loss of more than $114 million, prompting the exchange to temporarily suspend deposits and withdrawals. Despite the ongoing premium trading of TRX on Poloniex, Tron founder Justin Sun announced on Monday that TRX withdrawals are open.

Navigating the Trade-offs

The trade-off with buying cheaper TRX on Binance and selling it at a higher price on Poloniex is that certain assets are still held back from being withdrawn. Poloniex has stated that a phased approach to withdrawals is being implemented, starting with TRX, followed by bitcoin (BTC), ether (ETH), and tether (USDT) in the upcoming weeks.

Consequently, traders would be required to hold assets on Poloniex until they are made available for withdrawal.

Edited by Jonathan Stoker