As TRON takes a beating from US regulators, another blow has hit the network. Binance US, the US subsidiary of the world’s largest cryptocurrency exchange, has announced the upcoming removal of the TRX token from its trading platform. The decision is motivated by several factors, including the regulatory status in the United States and will take effect on April 18. An announcement that has already had a noticeable impact on the price of the token.
TRX and SPELL excluded from Binance US, the consequences of regulatory pressure
For the past days, Justin Sun, the founder of Tron, is in the crosshairs of the Securities and Exchange Commission of the United States. The regulators accused him of selling unregistered securities and manipulating the market with the TRX.
But the trouble doesn’t end there for TRON. This Wednesday, Binance.US just announced the delisting of TRX and SPELL, the token of the Abracadabra Money ecosystem.
The two tokens will be withdrawn on Tuesday, April 18but withdrawals will still be possible after this date, unlike exchanges and deposits which will be stopped.
The American branch of Binance reported that the decision to remove TRX and SPELL was made as part of a periodic review, during which the company considered several aspects, including:
- Trading volume and liquidity
- Changes in the risk profile of a token
- Evidence of fraud or unethical conduct
Factors influencing Binance.US’s decision include regulatory status in the United States and unethical behavior.
When a digital asset no longer meets our high standards, or industry circumstances change, we conduct a more thorough review of the affected asset and assess whether further action is necessary.From the Binance US press release
Binance has promised to disable TRX staking as of this Thursday and remove the token page the following day. However, the company reassured users that it will continue to support TRC-20 USDT and USDC issued on the TRON network.
Binance delists TRX and SPELL, immediate impact on market prices!
After the announcement of Binance US on Twitter last Wednesday, the price of the token TRX fell nearly 5 percent, hitting a low of $0.062 from $0.067 previously. Similarly, the Spell token fell about 6%, according to data from CoinMarketCap.
Although the Binance US decision had a negative impact on the price of TRX and Spell, Tron’s boss, Justin Sun, does not seem to care too much. According to him, TRX’s trading volume on Binance US has never exceeded $1 million per day, while the total trading volume of the token is $400 million.
It is worth remembering that Justin Sun was charged with fraud by the SEC last month, a charge he called “unfounded.” Furthermore, it is not surprising that Binance US would make such a decision, as the company is facing a lawsuit filed by the CFTC.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.