Tron has faced significant pressure as the cryptocurrency has dropped by 5% in the past day, falling from $0.066 to $0.062. This is a result of the US division of Binance, a cryptocurrency exchange, announcing the delisting of TRX, which is linked to Justin Sun.
However, Binance.US has clarified that it will still support TRC-20 USDT and USDC on the Tron network.
Troubles for Tron
In an official update, Binance.US claimed that its decision to delist a digital asset is based on various factors, including regulatory standing in the United States and evidence of unethical/fraudulent conduct or negligence.
“When a digital asset no longer meets our high standards, or industry circumstances change, we conduct a more in-depth review of the affected asset and assess whether further action is necessary (i.e. delisting).”
Binance.US will remove Tron on April 18, 2023, after reviewing. This news has caused TRX to fall to a low of $0.062, which was last seen in March. The recovery to the current price of $0.064 has been small due to significant fear, uncertainty, and doubt in the Tron ecosystem and a broader market downturn. Another token in the ecosystem, BTT, has lost more than 20% of its gains since February.
Binance.US’ decision comes after the US Securities and Exchange Commission accused Justin Sun of selling and airdropping unregistered securities, fraud, and market manipulation through his TRX and BTT tokens. These actions violated Section 5 of the Securities Act. The Tron Foundation, the BitTorrent Foundation, and BitTorrent (now Rainberry) have also been charged with fraud and market manipulation for creating a massive “wash trading” scheme that manipulated the trading volume of TRX.
The lawsuit also claimed that Sun attempted to artificially inflate the trading volume of TRX and forced Tron Foundation employees to participate in over 600,000 illegal trades using accounts controlled by the Tron and BitTorrent foundations. Sun has lost his ambassadorship to the World Trade Organization (WTO) as a result of these allegations.
Sun managed to address rumors of his arrest, but the negative developments have still led to a decline in the value of his tokens.