Tron has been under significant pressure as the crypto asset tanked by 5% over the past day from $0.066 to $0.062. This comes after the US division of crypto exchange Binance announced the delisting of the Justin Sun-linked token from its platform.
Binance.US clarified that it would continue to support TRC-20 USDT and USDC issued on the Tron network.
Troubles for Tron
According to the official update, Binance.US claims it considered various factors, including regulatory standing in the United States and evidence of unethical/fraudulent conduct or negligence, that contributes to its decision to delist a digital asset.
“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).”
After reviewing, Binance.US said it will remove Tron on April 18, 2023. The news dragged TRX to a low of $0.062, a level last seen in March. The recovery to press time price of $0.064 was mild owing to massive FUD in the Tron ecosystem as well as a broader market slump. Another ecosystem token, BTT, lost over 20% of its gains since February.
Binance.US’ decision comes weeks after the US Securities and Exchange Commission sued Justin Sun on allegations of selling and airdropping unregistered securities, fraud, and market manipulation via his TRX and BTT tokens, violating Section 5 of the Securities Act.
The regulatory agency also slapped the Tron Foundation, the BitTorrent Foundation, and BitTorrent (now known as Rainberry) with charges of fraud and market manipulation for creating an extensive “wash trading” scheme that manipulated the trading volume of TRX.
The lawsuit alleges 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.
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.