cryptopolitan.com
Binance CEO Changpeng Zhao warned cryptocurrency mogul Justin Sun that the exchange would take action if Sun tried to farm SUI tokens using recently deposited TUSD. Sun promptly apologized, attributing the actions to a misunderstanding, and reversed them.
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will "take action against it". SMH.
— CZ 🔶 Binance (@cz_binance) May 1, 2023
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
Sun had transferred more than 115 million TrueUSD (TUSD) stablecoins to Binance, which can be staked on Binance Launchpool to farm SUI, the native token of Mysten Labs’ Sui Network. Zhao noticed the large TUSD transfers and cautioned Sun against attempting to claim the Sui tokens through Launchpool, emphasizing that the platform is meant for retail users, not just a few whales.
Sun’s explanation and apology
Sun quickly explained that the TUSD transfer was intended for liquidity provision, but some of the stablecoins were mistakenly used to participate in exchange campaigns that would have resulted in SUI token rewards.
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
He assured that the action would be reversed, apologized for the oversight, and stated that Tron DAO Ventures deposited the tokens for market-making purposes. According to Sun, team members were unaware of the funds’ intended purpose and inadvertently used a portion for exchange campaigns. Sun contacted the exchange team for a full refund upon realizing the error.
Binance Launchpool, established in September 2020, allows users to earn newly launched tokens by staking BNB and other tokens. It differs from Binance Launchpad, a platform for purchasing new tokens. Despite this apparent miscommunication, Sun claims that he and Zhao maintain a close relationship and that the issue has been resolved.