Tron falls 3% after being delisted from Binance.
TRX, the token of the layer 1 blockchain Tron, fell by 5% yesterday following the announcement that Binance US will shortly delist the token. The decision was made after Binance US began a review of its listings to ensure that all tokens it offers satisfy a "high standard of quality."
The delisting of TRX is scheduled for April 18th. Justin Sun, the founder of Tron, reportedly seeks an official explanation for the cryptocurrency's delisting and is endeavouring to have it relisted. On the announcement, other Sun-related tokens, including the token of the crypto exchange Huobi, also declined.
What is the effect on Tron?
Sun believes that the delisting will not have a significant impact on the trading volume of TRX, as less than $2 million worth of the token is traded daily on the US branch of Binance. This represents less than 0.5% of the daily trading volume of $400 million for the token. Delisting from a division of the largest centralised exchange in the world is never positive news.
Compared to other cryptocurrencies, TRX has experienced a much more modest price increase since the beginning of the year, increasing by only 18% compared to others such as Ethereum, which increased by nearly 60% over the same period. TRX is currently rated sixteenth among cryptocurrencies by market capitalization, sitting at approximately $5.8 billion.
Tron's current difficulties
Tron has also been criticised by regulatory bodies in the United States, after Sun and its foundation were sued last month by the Securities and Exchange Commission (SEC). Sun and the Tron Foundation were accused of manipulating the market through wash trading to artificially inflate the price of the token.
The SEC has also referred to the protocol's token as an unregistered security. In addition, they have been in trouble for using celebrities to promote the token without disclosing that transactions have taken place. Nevertheless, TRX trading volumes remain robust, so it may be too soon for investors to become concerned.