Summary

  • Whale Alert reported a transfer of 56.1 million TUSD (approx. $56.4 million) from Justin Sun to Binance.
  • Binance CEO CZ warned Sun against using the funds to acquire LaunchPool Sui tokens, meant for retail users.
  • Sun clarified that the transfer aimed to facilitate market-making and enhance liquidity and the trading volume for TUSD.

Background

Recently, a significant transaction of 56,100,000 TUSD (equivalent to $56,444,454) was transferred from Justin Sun, the founder of TRON and owner of Huobi Global, to Binance, the largest cryptocurrency exchange in the world. The news was brought to light by Whale Alert – a blockchain tracking and analytics platform – through a post on Twitter.

CZ Warns Against Monopolization of Funds

Binance’s CEO Changpeng Zhao “CZ” responded to this tweet warning Sun against using these funds to acquire LaunchPool Sui tokens – which are intended for retail users rather than being monopolized by a few wealthy individuals. He did however acknowledge transparency provided by blockchain technology as a positive aspect of this situation.

Justin Sun’s Clarification

In response to CZ’s tweet Justin Sun clarified that the purpose behind this transfer was made by TRON DAO Venture – which is their partner market maker for TUSD – with an intention of facilitating market-making between leading exchanges in order to enhance liquidity and trading volume rather than participating in exchange promotions. He further added that within only a few hours their market maker had achieved total trading volume of 40 million dollars contributing towards stability of price for TUSD.

Conclusion

Sun concluded his statement by informing that some team members were not aware about intended purpose for these funds which resulted in them inadvertently using portion of it for exchange campaigns but upon realizing mistake they contacted exchanges immediately so as no further damage could be done due to it.