Binance.US To Delist TRON Despite Founder Justin Sun Dismissing Arrest Claims

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The US arm of Binance exchange has announced that it will remove Justin Sun’s token, TRON, from the trading platform citing the token’s failure to meet the exchange’s high standards. This resulted in the asset’s price plunging more than 5% on Wednesday. 

Binance US To Delist TRON

On April 12th, Binance released an announcement stating that it would delist two tokens, TRON and Spell, following the failure of the two assets to meet the exchange’s requirements during a periodical review.

The exchange explained, “We operate in a rapidly evolving industry and our digital asset monitoring process is designed to be responsive to market and regulatory developments,” adding that “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 further explained that during the review, it considers among other factors the trading volume and liquidity, evidence of unethical/fraudulent conduct or negligence, and the token’s regulatory standing in the United States. 

While the delisting is set to happen on the 18th of April, data from CoinMarketCap shows that the TRON token dropped about 7% against the U.S. dollar after the announcement whereas the Spell token dropped more than 5%. 

The exchange stated that deposits for the tokens would be halted on April 17 after which buying, selling and conversion will be stopped an hour later. Trading the two assets will be closed on April 18 but withdrawals will still remain open. 

Notably, this announcement came mere hours after rumors of the arrest of Justin Sun, founder of TRON, broke. Sun responded to the tweet with a “4” which is a crypto slang initiated by Binance’s CEO, CZ, to mean “Ignore FUD, fake news, and attacks”

In a response to Reuters, Sun said that the announcement’s impact would be “relatively small”. He said, “Binance.US trading volume is less than $1 million per day. TRX’s current trading volume is $400 million.”

Justin Sun Is In Regulatory Distress

While the arrest in Hong Kong has turned out to be false, Justin Sun still faces regulatory issues with the US Securities and Exchange Commission(SEC) which filed a complaint against him for allegedly offering and selling TRX and BTT as investments through multiple unregistered “bounty programs”.

The SEC also accused Sun of market manipulation through “extensive wash trading” in addition to unlawfully promoting the two offending assets without proper disclosure. 

The complaint which was filed on 22nd March further sued several celebrities for endorsing BTT and TRX without revealing the monetary remuneration they received for the promotion. The complaint specifically went after Lindsay Lohan, Jake Paul, DeAndre Cortez Way (Soulja Boy), Austin Mahone, Michele Mason (Kendra Lust), Miles Parks McCollum (Lil Yachty), Shaffer Smith (Ne-Yo), Aliaune Thiam (Akon).

Most of the celebrities listed chose to settle with the Commission and pay a total of $400,000 without admitting or denying guilt. 

This case has led to many in the crypto community speculating that it is the cause for the delisting of TRX by Binance. 

The price of Tron’s native token TRX dropped as much as 7% within a few hours of the delisting news. 

Tron Price At Risk Of Further Losses To $0.06

TRX had lost support offered by the $0.0658 level, embrace by both the 50-day Simple Moving Average (SMA) and the lower boundary of the ascending parallel channel. The token was fighting to stay above the $0.064 level, where the 100-day SMA sat. The long lower wick on today’s red candlestick was evidence that the bulls were aggressively defending this level. 

Therefore, a daily candlestick close below this level could trigger massive sell orders could send TRON toward the start of the ascending channel around the $0.06257demand zone. A drop lower could see TRX slide below the 200-day SMA around the $0.0600 psychological level to revisit the March 23 swing low below $0.0599  Such a move would represent a 7.23% decline from the current price.

TRON/USD Daily Chart

Tron Price Chart
TradingView Chart: TRX/USD

This bearish narrative was validated by the two red candlesticks at the end of the daily chart. Also with an over 80% increase in dailu trading volume to $409 million, it is evident that investors are motivated to sell TRX. 

Also supportoing the gloomy outlook to the Tron price was the sharp downward movement of the Relative Strength Index (RSI) as it enters the negative region. The price strenth at 45 was an indication that the bears have taken control of the price.

On the upside, if buyers succeed to hold above $0.064, increased buying could provide the hindwinds required to bolster TRX back above the 50-day SMA and into the rising channel. This would dispel any remaining selling pressure with the next logical move being a climb to the $0.06800 psychological level or to the upper boundary of the prevailing chart pattern at $0,06825. A rise above the channel would completely invalidate the bearish thesis. 

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Source: https://insidebitcoins.com/news/binance-us-to-delist-tron-despite-founder-justin-sun-dismissing-arrest-claims