Tron (TRX) Takes a Hit as Binance US Drops Support
TRON's native token, TRX, has taken a hit following the news that Binance US will no longer support it.
Binance, the world’s largest crypto exchange, announced that it would be delisting the TRON (TRX) token on April 12 due to a review that found it did not meet their high standards. The delisting only affects the token offering on Binance’s US arm, not Binance.com global.
The decision to delist TRX may have been influenced by the recent lawsuit filed by the Securities and Exchange Commission against TRON founder Justin Sun in March for unregistered securities offerings.
The lawsuit also included the TRON Foundation, the BitTorrent Foundation, and Rainberry Inc. for selling TRX and BTT tokens, which the SEC alleges are securities.
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. The exchange will also disable TRX staking on April 13 and will remove it from the staking page the following day.
Binance US stated that it considers several factors as part of its review process, including regulatory standing in the United States, which is likely the reason behind the delisting.
However, Binance US has clarified that it will continue to support TRC-20 USDT and USDC issued on the TRON network. The delisting impacted TRX’s price, which slumped 8% after the news, but quickly recovered afterwards. At the time of writing TRX is trading at $0.0645, down more than 70% from its ATH of $0.231 from January 2018.