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.