Binance US, the US subsidiary of the world's leading cryptocurrency exchange, Binance, announced that They will remove Tron (TRX) and SPELL from their trading platform.
Both tokens will be removed from Binance US on April 18th. Although TRX and SPELL withdrawals will still be possible. However, trading and deposits will no longer be available. The exchange said it will continue to support USDT and USDC stablecoins issued on the TRON network.
According to Binance US, the delisting was prompted by a routine review process. During which the company takes into account a variety of factors such as trading volume, liquidity and regulatory standing in the United States.
Other factors that may influence the decision to delist include evidence of fraud or unethical behavior associated with the token.
Binance US said in a statement: We operate in a rapidly evolving industry. Our digital asset monitoring process is designed to respond to regulatory and market developments.
When a digital asset does not meet our high standards or industry conditions change. We conduct a more in-depth review of the affected asset and assess whether further action (ie write-off) is necessary.
Right after the announcement, TRX fell. It is the seventeenth cryptocurrency on the market by market capitalization. to a three-week low of $0.062 before rebounding to $0.064 by press time. This still represents a decrease of 4.7% over the course of the day. It is the biggest drop among the top 50 assets in the cryptocurrency market, per CoinGecko.
SPELL, the other asset to be delisted from Binance US, is a reward token tied to abracadabra.money. It is a lending platform that uses interest-bearing tokens as collateral to secure loans for Magic Internet Money (MIM) dollar-pegged stablecoin.
In a similar pattern to TRX, SPELL price fell by 4.8% as a result of the delisting decision.
The move to delist TRX comes three weeks after the US Securities and Exchange Commission indicted Tron founder Justin Sun and several celebrities. Including Lindsay Lohan, Jack Powell and Akon price gouging of TRX tokens and BitTorrent (BTT).
The SEC alleged that both TRX and BTT are unregistered securities and that Sun engaged in price manipulation by organizing a scheme to pay celebrities to promote TRX and BTT without disclosing their compensation.
The SEC lawsuit specifically targets Sun's three companies: the Tron Foundation, BitTorrent, and Rainberry. The complaint further alleges that Sun made illegal profits of $31 million through TRX sales.
