Binance CEO CZ prevents Justin Sun from participating in SUI token launch
- Justin Sun, the CEO of Tron deposited 56.1 million TUSD to Binance earlier today.
- Binance CEO warned Sun against grabbing LaunchPool SUI tokens as users line up to stake their BNB and TUSD to farm SUI.
- Sun argued that TUSD tokens were deposited to keep the price of TUSD stable and ensure liquidity across exchanges.
Binance announced the farming of SUI tokens for users on April 30, by staking their BNB and TUSD in the Launchpool. Justin Sun, the CEO of Tron made a large volume TUSD transfer to the exchange, raising suspicion among crypto investors that SUI Launchpool rewards will be dominated by Sun staking his TUSD.
Sun clarified that his TUSD transfer was for meeting liquidity requirements and keeping the asset’s price stable across exchanges.
Binance CEO slams Justin Sun for his 56.1 million TUSD transfer
The world’s largest exchange by volume announced the launch of SUI farming on its Launchpool for its users that stake BNB and TUSD. The announcement resulted in users flocking to the exchange’s pool to farm SUI, while Justin Sun, the founder of Tron and a crypto whale moved 56.1 million TUSD to the exchange.
The massive transfer was recorded by a whale wallet tracker that notifies investors of the activity of large wallet investors.
56,100,000 #TUSD (56,444,454 USD) transferred from Justin Sun to #Binancehttps://t.co/OWFJNQ3oXO
— Whale Alert (@whale_alert) May 1, 2023
Sun’s move elicited a response from Binance CEO Changpeng Zhao who warned Sun against using his TUSD to claim SUI tokens from the Launchpool.
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will "take action against it". SMH.
— CZ Binance (@cz_binance) May 1, 2023
Binance LaunchPool are meant as air drops for our retail users, not just for a few whales.
On the bright side, blockchains are transparent... https://t.co/8Xs1oXjfVd
CZ sided with retail users and frowned upon a handful of whales grabbing SUI tokens meant for a large number of traders on the exchange’s Launchpool. CZ assured the crypto community that the exchange’s team has warned Justin against grabbing SUI tokens from the pool, if the TUSD funds were used Binance would take action against it.
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will "take action against it". SMH.
— CZ Binance (@cz_binance) May 1, 2023
Binance LaunchPool are meant as air drops for our retail users, not just for a few whales.
On the bright side, blockchains are transparent... https://t.co/8Xs1oXjfVd
Sun explains his TUSD transfer was for stabilizing the asset’s price
While crypto Twitter suspected Sun’s TUSD transfer was a move to grab SUI tokens from the exchange’s Launchpool, the Tron CEO explained that the transfer was routine, and meant to provide liquidity and stabilize TUSD price on the exchange.
经查，作为TUSD的合作做市商TRON DAO Venture过去数小时已经累计完成4000万美元的交易量，对于保持TUSD的价格稳定起到了作用，确实因部分同事不了解该资金用途，使用部分资金参与了交易所活动，我们已第一时间联络交易所，对于交易所活动资金进行全额退款，对此错误我们深表歉意！望周知！
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023
Binance’s move garnered praise from crypto traders staking their BNB and TUSD on the Launchpool to farm SUI over the next two days.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
