People have put almost $4 billion into Binance’s Sui farming pools because they’re expecting to receive free tokens from the blockchain.
Binance CEO Changpeng Zhao sent a message to Justin Sun, the founder of Tron, on May 1st. He warned him about depositing 56.1 million TrueUSD (a type of cryptocurrency) to Binance.
The Binance CEO told Justin Sun that if he uses those 56.1 million TrueUSD to get the LaunchPool Sui token, they will take action. The LaunchPool Sui tokens are meant to be given to regular users, not just people with a lot of money.
Justin Sun said that the reason they deposited the TrueUSD was to help trade between different cryptocurrency exchanges. However, some of his team members used the money to participate in an exchange promotion by accident. When they realized this, they returned the money to Binance and apologized for the mistake.
Sui is a new blockchain made by Mysten Labs. The people who created it used to work at Meta and they got $300 million in funding in September 2022. On April 30, Binance LaunchPool made it possible for users to stake their BNB or TUSD tokens in exchange for Sui tokens. If people stake their tokens over two days, they can get 0.4% of the total supply of Sui tokens for free.
“Once there are enough people trading Sui tokens, Binance will add it to its list of cryptocurrencies for people to buy and sell. They will offer Sui trading pairs such as SUI/BTC, SUI/USDT, SUI/TUSD, and SUI/BNB. The exact date and time when Sui will be available for trading will be announced later”.
Right now, people have put over 9.4 million BNB (worth $3.1 billion) and 686.8 million TrueUSD into the Sui launch pools on Binance. To use this feature, people need to verify their identity and it’s not available in some countries like the United States and North Korea.
In just the past few hours, our market maker has achieved a total trading volume of 40 million USD, contributing to the stability of TUSD's price.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 1, 2023
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