The world's largest crypto Binance has delisted Tron coin TRX after its recent troubles with the Securities and Exchange Commission. The new development will only affect the US branch of the crypto exchange and won't take effect globally. According to Binance, they decided after reviewing some of the tokens in their exchange that they found the TRX token not worthy enough to continue being listed in Binance US.
"At Binance.US, we periodically review each digital asset we list to ensure that it continues to meet the standard of excellence we expect. We operate in a rapidly evolving industry and our digital asset monitoring process is designed to be responsive to market and regulatory developments. 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)," Binance US said in a blog post.
This new decision was made due to an SEC lawsuit against Tron founder Justin Sun. The Tron founder and CEO was sued in March for offering some unregistered securities to the public. Tron coin wasn't the only delisted cryptocurrency after the Binance US review. Another token called SPELL is also set to be removed from the exchange. "Based on our review, Spell (SPELL) and TRON (TRX) will be delisted from Binance.US on April 18, 2023," Binance US said. SPELL is the native token of the Abracadabra Money ecosystem and has fallen under similar circumstances as Tron.
Justin Sun, Tron CEO (SCMP)
What is Happening to Tron?
It has been some tough months for Tron and its ecosystem as it suffers some setbacks due to a SEC lawsuit against them. SEC targeted Tron's founder and other organizations that are under the ecosystem. A high-profile lawsuit was served to TRON Foundation, the BitTorrent Foundation, and Rainberry Inc. The three organizations were all accused of collaborating to sell securities not registered under the Securities and Exchange Commission. It was obviously because of these issues that Binance decided to part ways with the token.
According to Binance, regulatory problems with government commissions and agencies are part of the reasons for delisting the token. They also provided the date for stopping the deposit of the tokens in the exchange.
"Deposits for SPELL and TRX on Binance.US will be closed on April 17, 2023, at 7 p.m. PDT / 10 p.m. EDT. Deposits for SPELL or TRX after this time will not be credited to your account."
"Staking for TRX will be disabled on April 13, 2023 at 4 a.m. PDT / 7 a.m. EDT and removed from the staking page on April 14, 2023 at 5 p.m. PDT / 8 p.m. EDT. If you have TRX staked, your TRX will be unstaked for you and deposited back to your wallet. You will receive your TRX staking rewards and staked TRX on April 14, 2023 at 8 p.m. PDT / 11 p.m. EDT," the crypto exchange added.
Tron's Current Bearish Trend
While the withdrawal of Tron and related tokens remain open, the cryptocurrency's price has dramatically reduced.
In the past 24 hours, Tron's price has been down by close to 5% since the news broke out about the delisting. On its weekly and monthly charts, it has suffered more damage by going down by more than 4.18% and 5.09%, respectively.