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Tron has faced considerable challenges as the cryptocurrency declined by 5% in the last 24 hours, dropping from $0.066 to $0.062. This decline follows the announcement from the US branch of crypto exchange Binance regarding the removal of the Justin Sun-associated token from its platform.
Binance.US specified that it will continue to support TRC-20 USDT and USDC that are issued on the Tron network.
Challenges for Tron
In its official statement, Binance.US indicated that it took into account several factors, including the regulatory status in the United States and indications of unethical or fraudulent behavior or negligence, which influenced its choice to delist a digital asset.
“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).”
Following its assessment, Binance.US announced that it would remove Tron on April 18, 2023. This news caused TRX to plummet to a low of $0.062, a price point not seen since March. The slight recovery to a current price of $0.064 was limited due to significant fear, uncertainty, and doubt (FUD) within the Tron ecosystem, along with a general downturn in the market. Another token within the ecosystem, BTT, experienced a loss of over 20% of its value since February.
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Regulatory Issues
The decision by Binance.US comes just weeks after the US Securities and Exchange Commission filed a lawsuit against Justin Sun, alleging the sale and airdrop of unregistered securities, fraud, and market manipulation involving his TRX and BTT tokens, in violation of Section 5 of the Securities Act.
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The regulatory body also charged the Tron Foundation, the BitTorrent Foundation, and BitTorrent (now referred to as Rainberry) with fraud and market manipulation for orchestrating a large-scale “wash trading” scheme that distorted the trading volume of TRX.
The lawsuit claims that Sun attempted to artificially boost the trading volume of TRX and compelled employees of the Tron Foundation to engage in over 600,000 illegal trades using accounts managed by the Tron and BitTorrent foundations.
Shortly thereafter, the founder of Tron lost his position as an ambassador to the World Trade Organization (WTO). Rumors regarding his arrest further intensified the FUD. Although Sun was able to dispel the arrest rumors, the series of adverse events contributed to the significant decline of his tokens.
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