On Wednesday, Binance’s U.S. division of its cryptocurrency exchange announced its intention to delist TRON and Spell digital asset tokens from its trading platform. This move caused significant drops in the prices of both tokens.
According to Binance’s U.S. division, the decision to delist TRON and Spell was made as part of a routine evaluation process. During these assessments, Binance.US typically takes into account various factors, such as trading volume, liquidity, alterations to a token’s risk profile, as well as any indications of fraudulent or unethical activities, among other considerations.
Following the news of the delisting, TRON’s value against the U.S. dollar decreased by almost 5%. The announcement was shared on Twitter and the Binance.US website. Meanwhile, according to CoinMarketCap’s data, the Spell token, which is considerably smaller, saw a drop of over 5%.
Binance.US stated that the removal of the two tokens will occur on April 18. Although withdrawals for both tokens will still be available, trading and deposits will no longer be possible.
According to a text message he sent to Reuters, Justin Sun, the creator of the TRON token, stated that the consequences of the delisting would be “fairly insignificant”.
Sun, who was recently accused of fraud by the U.S. Securities and Exchange Commission (SEC), noted that “Binance.US trading volume is less than $1 million per day, whereas TRX’s current trading volume is $400 million,” referring to the token’s ticker symbol.
In the past, Sun has declared that the SEC’s allegations “are baseless” and has criticized the regulator’s approach to overseeing digital assets, stating that the framework is “still developing and requires additional refinement.”
At the moment, Reuters has been unable to reach Spell representatives for comment.
