Binance US has dropped support for TRX trading. Binance said that it would be removing TRX just hours after Justin Sun fought off arrest rumors.
Binance, the world’s largest cryptocurrency exchange, announced the delisting of the TRON TRX coin. This, however, will only affect the token offering on Binance’s US branch, not Binance.com worldwide.
Binance US claimed that it has conducted an investigation that resulted in the decision to delist. Following a study, Binance.US announced that Tron will be removed on April 18, 2023. TRX fell to a low of $0.062, a level last seen in March, as a result of the news. Due to tremendous FUD in the Tron ecosystem as well as a larger market drop, the rebound to the press time price of $0.064 was weak. BTT, another ecosystem token, has lost more than 20% of its value since February.
“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).”
Tron Regulatory Issues
Binance.US’ ruling comes only weeks after the US Securities and Exchange Commission charged Justin Sun with selling and airdropping unregistered securities, fraud, and market manipulation through his TRX and BTT tokens, in violation of Section 5 of the Securities Act.
The Tron Foundation, the BitTorrent Foundation, and BitTorrent (now known as Rainberry) were also charged with fraud and market manipulation for orchestrating a massive “wash trading” scam that distorted TRX trade volume.
The complaint claims that Sun sought to fraudulently exaggerate TRX trading volume and pushed Tron Foundation workers to participate in over 600,000 illicit trades using Tron and BitTorrent foundation accounts.
The Tron founder also lost his ambassadorship to the World Trade Organization (WTO) shortly thereafter. The exec’s arrest rumors further aggravated the FUD. While Sun managed to put his arrest rumors to rest, the series of negative developments, however, aided in the massacre of his tokens.