TRON founder Justin Sun’s latest TUSD transactions have received backlash from Binance CEO Changpeng Zhao. Zhao said that Binance will take action if Sun tries to claim SUI tokens using recent TUSD deposits. However, Sun stated that some of the TUSD transfer was mistakenly transferred to staking. This is an investment move that will bring rewards in the form of SUI tokens on Binance Launchpool. Here are the details…
Binance CEO warns Justin Sun
Binance CEO Changpeng Zhao warned Justin Sun that the exchange would take action against him if he tried to collect SUI tokens. However, Sun quickly apologized, stating that his actions were unintentional. According to Whale Alert tweets, as we reported as Kriptokoin.com, Sun was active earlier today. Transferred a total of over 115 million TrueUSD (TUSD) stablecoins to Binance. TUSD is one of two tokens (the other being BNB) that can be staked on Binance Launchpool to farm SUI, the native token of Mysten Labs’ Sui Network, Binance announced today. Yield farming is the process of earning tokens by providing liquidity to DeFi protocols.
https://twitter.com/whale_alert/status/1652915247127166978
“We noticed their huge transfers in TUSD,” said Changpeng “CZ” Zhao, CEO of Binance. He tweeted that if Sun uses any of these tokens to acquire existing Sui tokens via Launchpool, Binance will “take action against it.” “Binance Launchpool is designed as an airdrop service for our individual users, not just a few whales,” Zhao said. Finally, “The good thing is: Blockchains are transparent”.
https://twitter.com/cz_binance/status/1652949031524376579
What was Justin Sun’s response?
Sun was quick to clarify that the TUSD transfer was done to provide liquidity. However, he added that some of these stablecoins were “accidentally” used to participate in exchange campaigns that would yield SUI token rewards, and the action would be reversed. Sun said that TUSD’s market maker, Tron DAO Ventures, has invested the tokens in Binance for market making.
In just the past few hours, our market maker has achieved a total trading volume of 40 million USD, contributing to the stability of TUSD's price.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023
Sun tweeted, “Unfortunately, some of our team members were not fully aware of the intended use of these funds. He accidentally used some of it to participate in stock market campaigns. After becoming aware of this error, we immediately contacted the exchange team. Then we had all the funds returned,” he said. “We sincerely apologize for that,” Sun added.
Binance Launchpool emerged during the rise of DeFi in September 2020. The platform allows users to earn new tokens in exchange for staking BNB and other tokens. Launchpool is different from Binance Launchpad, which is essentially a platform for purchasing new tokens.
The only problem is “lack of communication”
This seems to be Zhao’s first public warning against Sun. The two executives have had a close relationship over the years. Sun said in a statement that the incident was “just a miscommunication”. “I texted CZ and he got it,” the TRON founder said.
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