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Binance CEO and founder, Changpeng Zhao, has warned Justin Sun over any attempt to misuse Binance Launchpool’s SUI airdrop after Sun’s massive TUSD transfer to Binance.
Changpeng “CZ” Zhao, Binance CEO, reacted to Tron founder Justin Sun dumping 56,1 million TUSD and 59 million TUSD to Binance on May 1. CZ warned Sun that he would take action against him if he attempted to misuse the Binance Launchpool’s SUI airdrop.
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
Binance CEO tweeted that the company will take action against Sun if he uses the TUSD he transferred to Binance to grab the Launchpool SUI Token airdrop. The exchange’s founder also said that Binance LaunchPool is made for airdrops for Binance retail users and not just for a few whales.
CZ ended his tweet with an uncompleted sentence:
“On the bright side, blockchains are transparent…”
The transparency reminder meant that Binance would know if Sun gets any SUI tokens through the recorded TUSD sales from blockchain data.
Sun transferred TUSD to Binance to increase TUSD’s liquidity
Sun responded, saying he had no intention of participating in any Binance exchange promotions and that the TUSD transfer was part of supplying liquidity between prominent TUSD exchanges.
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
Sun added that the deposit was meant to ease market-making between prominent TUSD exchanges, which provide trading volumes and market liquidity. He further argued that the transfer stabilized the TUSD price with enough liquidity to the exchanges.
He noted that some Tron team members unknowingly participated in exchange campaigns. He claimed the members were not adequately informed of the intended purpose of the funds and used a portion of them on exchange platforms. Sun, however, noted that the exchange team is working on a full refund.
Binance launches SUI Farming on Launchpool
On April 30, Binance launched its SUI token, the 33rd project on Binance Launchpool. Users can farm Delegated Proof of Stake (DPoS) layer one blockchain Sui’s SUI token by betting on their TUSD and BNB into separate pools. The farming window will only be active for two days.
Binance will list SUI and open trading in the SUI/TUSD, SUI/USDT, SUI/BNB, and SUI/BTC trading pairs after the token meets its liquidity requirements. Binance will charge zero maker fees on the SUI/TUSD trading pair until further notice.