Tron founder and crypto entrepreneur Justin Sun has transferred over $56.4 million worth of True USD (TUSD) to crypto exchange Binance, sparking speculation about his intention to farm the just-released Sui (SUI) tokens on the Binance LaunchPool.
On Monday morning, Whale Alert flagged Sun’s transaction, which immediately sparked rumors about his intention to farm the newly released SUI tokens on the Binance LaunchPool. Shortly after, Binance CEO Changpeng Zhao (CZ) disclosed that the exchange’s team had warned Sun to refrain from using any part of the TUSD deposit to grab the SUI rewards on the platform.
SUI Farming on Binance LaunchPool
Binance LaunchPool allows traders to stake their crypto assets in liquidity pools of emerging blockchain projects to earn rewards calculated daily. Sui is the 33rd project on the launchpool, and users are allowed to stake their Binance Coin (BNB) and TUSD in separate pools to farm SUI for two days, starting May 1st, 2023.
Binance also promised investors zero maker fees on the SUI/TUSD trading pair until further notice. The exchange will then list the token on its trading platform across different trading pairs, including SUI/BTC, SUI/USDT, SUI/TUSD, and SUI/BNB if the token’s liquidity meets the required amount.
CZ Warns Against Sun’s Actions
While commenting on Sun’s actions, CZ insisted that the Binance Launchpool is meant as airdrops for the exchange’s retail users, not just a few whales. He further noted that the Binance team was prepared to take action against the Tron founder if he used his deposited assets to collect the Sui tokens during the farming period.
A few minutes after CZ’s disclosure, Sun apologized for the oversight caused by the transfer and clarified the situation. He said the Tron decentralized autonomous organization (DAO) deposited TUSD to facilitate market-making between exchanges and enhance liquidity and trading volume. However, some Tron team members were unaware of the DAO’s primary objective and used the funds to participate in exchange promotions and campaigns.
Justin Sun’s transfer of over $56.4 million worth of TUSD to Binance has sparked speculation about his intention to farm the newly released SUI tokens on the Binance LaunchPool. While Binance promised zero maker fees on the SUI/TUSD trading pair until further notice, CZ warned against Sun’s actions and reiterated the exchange’s commitment to airdrops for all its retail users. Despite Sun’s apology for the oversight caused by the transfer, the incident has raised concerns about market manipulation and highlighted the need for greater transparency and accountability in the crypto industry.