TRON [TRX] fell by over 7% hitting a two-week low after Binance.US discloses plans to delist the token. In the announcement post, the US trading platform stated that it would remove TRX and Spell [SPELL] on April 18, 2023.
Binance.US in its blog said that it periodically reviews each digital asset to ensure that it continues to meet the standard in a rapidly evolving industry.
“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],” it added.
Although the trading company did not specifically say which evaluation criteria the aforementioned tokens fell short of, it listed a number of factors that had a role in the decision to delist the tokens.
Some of these are- changes in a digital asset token’s risk profile and regulatory standing in the United States. evidence of unethical/fraudulent conduct or negligence etc.
It should come as no surprise, judging from the listed factors, that one of the delisted tokens recently came under regulatory fire.
The US SEC has filed a lawsuit against three firms led by Justin Sun, TRON Foundation, BitTorrent Foundation, and Rainberry for allegedly marketing and airdropping TRX and BTT as unregistered securities.
In the press release, the regulator alleged the defendants “fraudulently manipulat[ed]” TRX’s secondary market through an “extensive wash trading” scheme.
Sun, former Grenada’s ambassador to the World Trade Organization, also lost his diplomatic rank after the party that granted him the post was ousted from power in June 2022.
Recently the Tron founder was caught amid rumors of arrest after his arrival in Hong Kong.
TRON Founder’s Reply To Arrest Rumors
Crypto YouTuber Ben Armstrong who goes by BitBoy posted a tweet about the alleged arrest, triggering a reaction from the crypto community.
The news quickly gained traction and was covered by the media. Sun responded with the signal “4”, which has grown in popularity in the crypto world, of late.
Binance CEO Chanpeng “CZ” Zhao added his two cents, writing the same number in response to the rumor. CZ made use of the number “4” to encourage people to “ignore FUD (Fear, Uncertainty, Doubt), fake news, attacks, etc.”