On Wednesday, Binance US announced that it would be removing TRON and Spell digital asset tokens from its trading platform, causing a significant drop in both tokens' prices. The decision was part of Binance US's periodic review, in which it considers factors such as trading volume, liquidity, changes in risk profile, and evidence of fraud or unethical conduct. The announcement was made on Twitter and the Binance US website, and both tokens will be delisted on April 18. While withdrawals will remain open, trading and deposits will close.
Following the announcement, the TRON token fell nearly 5% against the US dollar, while the Spell token fell more than 5%, according to CoinMarketCap. However, TRON founder Justin Sun stated that the impact would be "relatively small," as Binance US's trading volume is less than $1 million per day, compared to TRX's current trading volume of $400 million.
Sun has previously been accused of fraud by the US Securities and Exchange Commission (SEC), but he dismissed the complaint as lacking merit and argued that the SEC's framework for regulating digital assets is still in its infancy and needs further development.
In its announcement, Binance US explained that its digital asset monitoring process is designed to be responsive to market and regulatory developments. When a digital asset no longer meets its high standards or industry circumstances change, the exchange conducts a more in-depth review of the affected asset and assesses whether further action is necessary.
A spokesperson for Tron stated that they are in communication with Binance.US over this matter and have no further comment at this time.