Binance.US, a unit of crypto giant Binance set up to serve United States customers, plans to delist the native token of the Tron blockchain, TRX, on April 18, citing the “digital asset no longer meets our high standards”.
According to the official blogpost, Binance.US revealed the platform will delist Tron (TRX) as the digital asset failed to meet its standard of expectations. The American subsidiary of Binance, further explained, that its digital asset monitoring process has been designed to be responsive to the current market and regulatory developments across the industry.
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
TRX Drops Following Delisting Announcement
The platform added it would delist any token considering several factors such as changes in the token’s risk profile, regulatory standing in the U.S. and unethical conduct. However, withdrawals will remain open, but trading and deposits will close. Binance.US wrote,
“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 further noted that the TRON (TRX) staking service will be disabled on April 13, 2023, at 11 AM GMT and the cryptocurrency be delisted at 12 AM GMT. As the news broke out, Tron (TRX) prices witnessed a dramatic drop. As per data from CoinMarketCap, TRX tanked 5.01% in the last 24 hours to hover at $0.063. Meanwhile, the token dropped more than 4% over the past seven days.
Tron Founder’s Tussle With US SEC
The move comes shortly after the U.S. Securities and Exchange Commission (SEC) sued Tron founder Justin Sun over allegations of selling and airdropping unregistered securities, fraud and market manipulation involving the TRX token. In addition, there were certain claims on Twitter recently, suggesting Sun was arrested in Hong Kong.
However, the Tron founder denied the claims, citing FUD with Binance’s CZ trademark “4”. Furthermore, in a text message to Reuters, Sun noted the delisting impact would be “relatively small”. He said,
“Binance.US trading volume is less than $1 million per day. TRX’s current trading volume is $400 million.”
4
— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 11, 2023
Launched in 2017, Tron has established itself as a core decentralized finance (DeFi) chain with over $5.5 billion in total value locked (TVL) across its 17 protocols. In comparison, Arbitrum, with over 280 protocols, has only $3 billion in TVL, while Binance’s BNB Chain has only $6.5 billion locked with nearly 580 protocols.
Not just DeFi, the Tron network has been excelling in the spot market as well. As per analysis, the daily active users on Tron sit at 1.7 million, outshining the likes of Ethereum, BNB chain and Polygon, with each having 317,000, 1.1 million and 387,000 daily active users, respectively.
