CZ Takes Action Against Justin Sun’s Attempt to Farm Sui Token on Binance LaunchPool
Binance CEO Changpeng Zhao (CZ) has revealed that the exchange will prevent crypto entrepreneur Justin Sun from farming Sui tokens with his $56.1 million TUSD deposit. Whale Alert had reported earlier today that Sun had sent the amount to Binance, sparking speculation that he was attempting to farm SUI via Binance LaunchPool.
However, CZ has assuaged the community’s fears by stating that Binance had warned Sun that they would take action against him if he tried to farm the token. According to the CEO, the LaunchPool is meant as an airdrop for retail users, not just for a few whales. CZ tweeted that his team had informed Justin that if he used any of his funds to grab the LaunchPool Sui token, they would “take action against it.”
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will “take action against it”. SMH.
Binance LaunchPool are meant as air drops for our retail users, not just for a few whales.
On the bright side, blockchains are transparent… https://t.co/8Xs1oXjfVd
— CZ 🔶 Binance (@cz_binance) May 1, 2023
Binance’s Sui LaunchPool allows users to stake TUSD and BNB to farm SUI tokens over the next two days. As of press time, $655 million TUSD and 9.2 million BNB had been staked in the pool.
Sun responded by saying that the Tron DAO Venture had transferred the money as a market maker to cooperate with TUSD. He added that the deposit was intended to balance the TUSD price discrepancy and increase the liquidity of pending orders and trading volume.
As a partner market maker for TUSD, TRON DAO Venture’s primary objective in depositing TUSD is to facilitate market-making between leading TUSD exchanges, thereby enhancing liquidity and trading volume, rather than participating in any exchange promotions.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023
While claiming that the funds were not intended for participation in trading activities on exchanges, it appears that some of the funds have indeed been staked on the SUI LaunchPool. Sun said that this was a mistake by colleagues who misunderstood the purpose of the funds.
“We have contacted the exchange to return the full amount as soon as possible. We apologize for this misunderstanding,” he said.
However, not everyone believes Sun. Some think that he is only reversing course after being publicly criticized. Sun is a savvy investor who has used his fund’s access to execute high-profit transactions. For example, he took advantage of the USDC dip to earn around $3 million.
The incident underscores the importance of transparency in the cryptocurrency world and the need for users to carefully consider their actions before investing large sums of money. It also highlights the role of exchanges in ensuring fair and equitable access to tokens and other investment opportunities.
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