•Binance has announced the delisting of TRON, following US Securities and Exchange Commission’s (SEC) charges against Justin Sun and his companies for fraud.
•The SEC accuses Sun of “extensive wash trading”, paying celebrities to tout TRX and BTT without disclosing their compensation.
•TRX went down 5% in the past 24 hours as rumors spread that Justin was arrested in Hong Kong.
Binance Delists TRON
Binance has announced the delisting of TRON from its platform. The move was made after the US Securities and Exchange Commission (SEC) took action against crypto mogul Justin Sun and three of his wholly-owned companies – Tron Foundation Limited, BitTorrent Foundation Ltd, and Rainberry Inc – for alleged securities fraud.
SEC Charges
The SEC charged Sun with “extensive wash trading which involves the simultaneous or near-simultaneous purchase and sale of a security to make it appear actively traded without an actual change in beneficial ownership”, as well as orchestrating a scheme to pay celebrities to promote TRX and BTT without disclosing their compensation. Celebrities such as Jake Paul, Ne-yo, and Lindsay Lohan are also charged by the SEC for not disclosing their payment for illegally touting these tokens.
Market Impact
Following the delisting announcement, TRX went down 5% in just 24 hours due to fear, uncertainty, and doubt among investors. According to CoinGlass data, sentiment surrounding the token has been bearish since then with more short positions betting against TRX while holders were liquidated over half a million times with most of them coming from long positions. At press time, bears are testing $0.06209 support but this may be unreliable in the short term.
Rumors And FUD
Rumors quickly spread on Twitter about Justin being arrested when he arrived at Hong Kong for a cryptocurrency event but he was seen attending freely at the event even Tweeting about meeting his mentor who is Alibaba’s former CSO. Despite these recent tweets trying to stop FUD around his situation it did not stop bears from taking control of the market quickly.
Can Tron Recover?
Right now market sentiment is bearish but this intensified due to charges against Justin Sun making it difficult for Tron to recover anytime soon even if support holds true at $0.06209