Binance US, a branch of the world’s largest crypto exchange, has announced that it will delist two crypto projects by April 18, 2023. The exchange will delist TRON (TRX) and Spell (SPELL).
The exchange did not give any detailed explanation of the delisting except for a generic and general explanation of how it arrived at such decisions.
At Binance.US, we periodically review each digital asset we list to ensure that it continues to meet the standard of excellence we expect. We operate in a rapidly evolving industry and our digital asset monitoring process is designed to be responsive to market and regulatory developments. When a digital asset no longer meets our high standards, or industry circumstances change, we conduct a more in-depth review of the affected asset and assess whether further action is necessary (i.e. delisting).
Binance US, April 2023
Binance US further listed factors that contribute to their decision process.
- Changes in a digital asset token’s risk profile
- Contribution to a healthy and sustainable crypto ecosystem
- Trading volume and liquidity
- Regulatory standing in the United States
- Demonstrable progression and growth of development activity
- Changes in the network’s resilience from external or internal attacks
- Network / smart contract stability
- Levels of community engagement
- Evidence of unethical/fraudulent conduct or negligence
About Tron
Tron is a decentralized blockchain platform that was founded by Justin Sun in 2017. It aims to create a global digital content entertainment system. One of its key features is its focus on the entertainment industry. Tron is designed to enable content creators to share their work directly with their audience. Its native token is called Tronix or TRX.
Its founder Justin Sun has recently been charged by the U.S. Securities and Exchange Commission (SEC) with Fraud and Securities Law Violation. The SEC is accusing Sun and his companies of market manipulation of TRX through wash trading.
Is Binance Protecting Itself and Its Customers?
According to Binance’s statement, its digital assets monitoring process is designed to be responsive to market and regulatory developments. While the exchange did not say that it delisted Tron in connection with the SEC charges, we can only assume that this played a part.
The crypto industry has been under siege for a while now, and a big exchange like Binance will do what it can to avoid being in the crosshair of the SEC. The world’s biggest crypto exchange is also being accused by the Commodity Futures and Trading Commission (CFTC) of committing some violations.
In the end, exchanges like Binance should do what they can to protect the community. Reviewing if a digital asset is still up to par is part of normal housekeeping.
Read Binance’s statement here
Featured Image from Pixabay
