Tron gets delisted by Binance, TRX Drops 5%, Citing Regulatory Standing in US

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By Degen Lipsa

Mere hours after Justin Sun resisted arrest rumours, Binance announced that it will be withdrawing Tron.

Tron has come under intense assault as the digital currency dropped 5% in the last day, from $0.066 to $0.062. This comes after the Justin Sun-related token was delisted from the Binance platform by the US branch of the cryptocurrency exchange.

Binance.US made it clear that it would keep supporting USDT and USDC issued as TRC-20 on the Tron network.

Tron’s troubles

In the official statement, Binance.US notes that in making the decision to delist a digital asset, it took into account a number of criteria, including the regulatory environment in the United States and evidence of unethical/fraudulent behaviour or incompetence./

Upon assessment, Binance.US said it would discontinue support for Tron on April 18, 2023. The news caused TRX to fall to a low of $0.062, last reached in March. Due to widespread FUD in the Tron ecosystem as well as a general market decline, the rebound to the price at press time of $0.064 was rather modest. BTT, a different ecosystem token, has given up more than 20% of its gains since February.

Regulatory Turmoil regarding Tron

Binance.US’s decision comes after the US Securities and Exchange Commission sued Justin Sun on claims that he violated Section 5 of the Securities Act by selling and airdropping unregistered securities, engaging in fraud, and manipulating the market using his TRX and BTT tokens.

The regulatory body also filed charges of fraud and market manipulation against the Tron Foundation, the BitTorrent Foundation, and BitTorrent (formerly known as Rainberry) for developing a complex “wash trading” scheme that affected the trading volume of TRX.

According to the lawsuit, Sun tried to artificially increase the trading volume of TRX and coerced workers of the Tron Foundation into taking part in more than 600,000 unauthorised trades using accounts that belonged to the Tron and BitTorrent foundations.

Shortly after, the founder of Tron was removed as an ambassador to the World Trade Organization (WTO). Rumors of the executive’s arrest fueled further FUD. Although Sun was able to dispel the reports of his incarceration, a string of unfavourable events made it easier for his tokens to be massacred.

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