Binance to take action against Justin Sun if he farms SUI token Binance to take action against Justin Sun if he farms SUI token
Justin Sun said the TUSD deposits made to Binance were to increase the liquidity of pending orders and trading volume.
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Updated: Jul. 15, 2023 at 1:56 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance CEO Changpeng ‘CZ’ Zhao said the exchange would prevent crypto entrepreneur Justin Sun from farming Sui tokens with his $56.1 million True USD (TUSD) deposit.
On May 1, Whale Alert reported that Sun had made the deposit mentioned above to Binance, prompting speculations that he was trying to farm the SUI token through the exchange’s LaunchPool.
However, CZ allayed the community’s fears that Binance had warned Sun that it would “take action” against him if he tried to farm the tokens. According to the CEO, the exchange’s LaunchPool is meant as airdrops for retail users, not just for a few whales.
The Binance Sui LaunchPool allows users to stake TUSD and BNB to farm SUI tokens over the next two days. As of press time, $558.8 million TUSD and 9.2 million BNB tokens were staked in the pool.
Sun issues response
Sun responded that Tron DAO Venture made the transfer in its role as a cooperative market maker for TUSD. He added that the deposit was meant to level the TUSD price difference and increase the liquidity of pending orders and trading volume.
Meanwhile, despite the claim that the funds were not meant for participating in activities on exchanges, it appears that part of the funds has been staked on SUI LaunchPool.
Sun stated that this was a mistake by colleagues that did not understand the purpose of the funds. “We have contacted the exchange as soon as possible to refund the exchange activity funds in full. We apologize for this mistake,” he added.
However, not everyone believes Sun; some think he is only backtracking after being called out publicly. Sun is smart money that has used his access to funds to make very profitable trades. For instance, he capitalized on the USDC depeg to profit around $3 million.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
TrueUSD, a USD-backed stablecoin you can exchange and trust.
Sui
$3.54741
Sui (SUI) is a delegated proof of stake (DPoS) layer 1 blockchain based on the Move programming language.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.