The native token for the TRON network, TRX, has taken a beating on the news that Binance US will no longer support it.
On April 12, the world’s largest crypto exchange Binance announced that it would be delisting the TRON TRX token. However, this will only affect the token offering on Binance’s US arm, not Binance.com global.
Binance US stated that it had conducted a review which led to the decision to delist.
“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).”
The move comes after the Securities and Exchange Commission sued TRON founder Justin Sun in March for unregistered securities offerings
The company also stated that it would be delisting SPELL, the native token of the Abracadabra Money ecosystem.
TRON Founder Targeted
In a recent salvo in its ongoing war on crypto, the SEC targeted TRON founder Justin Sun. In addition to the TRON Foundation, the BitTorrent Foundation and Rainberry Inc. were also included in the lawsuit.
They were accused of selling TRX and BTT tokens which the SEC asserts are securities.
Binance U.S. stated that it considers several factors as part of its review process. Among them, and likely to be the factor behind the delisting, was “Regulatory standing in the United States.”
It stated that deposits for TRX on Binance.US will be closed on April 17, 2023, at 19:00 PDT. Additionally, buy, sell, convert, and OTC functionality will be removed one hour after deposits close, it added.
The exchange will also disable TRX staking on April 13 and will remove it from the staking page the following day.
“We will continue to support TRC-20 USDT and USDC issued on the TRON network,” the firm stated.
TRX Price Slumps
TRON’s native TRX token has slumped 8% over the past couple of hours. TRX fell from an intraday high of $0.067 to bottom out at $0.063 around two hours ago.
At the time of publication, TRX had not recovered and was around the same level. Furthermore, TRX has fallen 72.5% from its January 2018 all-time high of $0.231.
Furthermore, the other delisted token, SPELL, has slumped 6% since the announcement. At the time of writing, it was trading at $0.00076.
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