Binance CEO CZ has warned Justin Sun and other large cryptocurrency holders not to misuse the SUI airdrop given out by Binance Launchpool, or else he will take action against them.
Binance CEO, Changpeng “CZ” Zhao, warned Justin Sun, the founder of Tron, not to misuse the Binance Launchpool’s SUI airdrop, which started on May 1st. This warning came after Justin Sun deposited millions of TUSD stablecoins into Binance. CZ said that Binance will take action against Justin Sun if he tries to misuse the airdrop.
Justin Sun said that he did not plan to take part in any exchange promotions and that the transfer of TUSD earlier was just a part of providing liquidity between major TUSD exchanges.
Binance Pledges To Take Action Against Justin Sun
On May 1, Binance CEO made a tweet warning Justin Sun that if he uses the TUSD he transferred to Binance to get the Launchpool SUI Token airdrop, Binance may take action against him.
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will "take action against it". SMH.
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
— CZ 🔶 Binance (@cz_binance) May 1, 2023
The CEO of Binance warned Justin Sun not to misuse the Binance Launchpool’s SUI airdrop, and clarified that the airdrop is for retail customers only, not for Sun or any whales. The CEO ended his tweet by saying that blockchains are transparent, meaning that if Sun tries to get SUI tokens by selling TUSD, the transaction will be recorded on the blockchain.
Justin Sun responded that he had deposited TUSD to help with market-making between top TUSD exchanges, which benefits liquidity and trading volume. He also clarified that he does not plan to participate in any exchange promotions.
Justin Sun explained that the transfer of TUSD helped in stabilizing its price and provided liquidity to the exchanges. He added that some users might have participated in exchange promotions unknowingly, but he plans to refund them. Justin Sun also emphasized that he will not take part in any exchange promotions.
Justin Sun said that some of his team members used a part of the TUSD transferred to participate in exchange campaigns without knowing its intended purpose. He further added that upon realizing the mistake, they contacted the exchange team and arranged for a full refund.
On May 1, a wallet associated with Justin Sun transferred around $116 million worth of TUSD in two transactions to Binance. In the first transaction, 59 million TUSD was transferred and in the second, 56.1 million TUSD was transferred.
Binance Introduced SUI Farming on Launchpool
Binance announced a new project called SUI token on April 30. Users can earn SUI tokens by staking their BNB and TUSD coins into different pools for two days only. The SUI token is a type of digital asset on the DPoS layer 1 blockchain Sui.
Binance will allow trading of SUI token against different cryptocurrencies like BTC, USDT, TUSD, and BNB once the token has sufficient liquidity on its platform. The exchange will not charge any maker fees for the SUI/TUSD trading pair until further notice.