Binance.US, the American arm of the centralized crypto exchange, announced its plan to delist Tron’s native token TRX amid the ongoing fear, uncertainty, and doubt (FUD) surrounding the alleged arrest of Tron founder Justin Sun and following the lawsuit filed by the U.S. SEC against the crypto executive.
Binance.US’ recent announcement about Tron’s native token’s delisting sent the price of TRX to plummet sharply Wednesday. According to the exchange, the decision was due to the periodic review it conducted, as well as the factors it regularly considers, which include trading volume, liquidity unethical conduct and many others.
“At Binance.US, we periodically review each digital asset we list to ensure that it continues to meet the standard of excellence we expect,” the exchange said on its support page.
“We operate in a rapidly evolving industry and our digital asset monitoring process is designed to be responsive to market and regulatory developments,” it further said, noting, “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).”
The exchange also informed its clients and customers that TRX staking will be disabled starting at 7 a.m. EDT on Thursday and delisting will commence at 8 p.m. EDT on Friday with staked TRX and earned rewards returned to customers at 11 p.m. EDT on Friday.
“TRON (TRX) Staking will be disabled on April 13, 2023, at 4 a.m. PDT / 7 a.m. EDT and be delisting at 5 p.m. PDT/ 8 p.m. EDT on 4/14,” the tweet read, noting that “any staked TRX or earned rewards will be returned at 8 p.m. PDT/ 11 p.m. EDT on 4/14.”
At #BinanceUS, we periodically review each digital asset listed to ensure that it continues to meet the standard of excellence we expect.
Based on our recent review, Spell (SPELL) & TRON (TRX) will be delisted from the platform on April 18, 2023.
(🧵1/2) pic.twitter.com/EJCzM9xZdN
— Binance.US Customer Support (@BinanceUShelp) April 12, 2023
Following the announcement, TRX plummeted by 13.7%.
Interestingly, crypto Twitter was surprised when a rumor made rounds on the platform, alleging that Sun was arrested by law enforcement officers in Hong Kong and was held at the Michinawanamun Station.
Sun only responded with the number 4, which was first used by Binance CEO Changpeng Zhao when FUD about his arrest also surfaced online.
Rumors about Sun’s arrest stemmed from the lawsuit filed by the Securities and Exchange Commission in March which alleged that the crypto kingpin violated securities rules and accused him of breaking anti-fraud and market manipulation regulations.
The lawsuit also involved Tron’s native coin TRX.
Following the lawsuit, Sun commented that the case “lacks merit.”
TRX saw a 4.68% loss over the past 24 hours and was training in the red zone at $0.06394 with a 24-hour market volume of $421,735,677 as of 5:00 a.m. ET on Wednesday, according to the latest data from CoinMarketCap.
