Despite BinanceUS Delisting Warning, 'Tron' Revives... Anxiety Remains
by Lee Jungyun
Published 18 Apr.2023 07:25(KST)
Price Dropped After Delisting News but Recovered
Trading Continues on Exchanges Other Than Binance... Domestic Market Also Watching Closely
The U.S. branch of the global virtual asset exchange Binance has decided to delist Tron, a top market capitalization coin. As a result, Tron's price plummeted but later showed signs of recovery, calming the impact of the delisting. However, the market remains on high alert.
According to CoinMarketCap, a global virtual asset market status relay site, as of 3:27 PM the previous day, Tron's price was recorded at $0.0665 (approximately 87 KRW), up 0.39% compared to the previous day.
Tron, which was priced at $0.0669 on the 12th of this month, sharply dropped after Binance US announced the delisting. Within about an hour, it fell to $0.0626, a decline of over 6%. On the 18th (local time), Binance US announced the planned termination of trading support. The reasons cited for ending trading support included ▲trading volume and liquidity ▲U.S. regulations ▲network and smart contract stability ▲proof of development activity and project progress ▲contribution to a sustainable virtual asset ecosystem ▲evidence of unethical and fraudulent activities.
Some argue that beyond the reasons presented by Binance US, the delisting was influenced by the need to appease U.S. regulatory authorities. The U.S. Securities and Exchange Commission (SEC) has charged Tron founder Justin Sun with unregistered securities sales and market manipulation. Binance US was also sued by the SEC for fraud-related charges, and it is believed that the delisting decision was made to sever ties with Tron. Justin Sun denied the allegations, calling them "lacking in validity."
Despite Binance US's delisting decision, Tron's price showed signs of recovery. This has been interpreted as the recent plunge not being an issue inherent to the Tron coin itself, and the absence of delisting moves on other exchanges besides Binance US appears to have influenced this. An industry insider stated, "Since Tron trading is still possible on other exchanges, the perception that 'this is not a concerning issue' has spread, leading to an influx of bargain buying."
The total deposit size on the Tron blockchain also did not show significant volatility. According to data from DeFi analysis platform DeFiLlama, as of that day, the total deposits amounted to $5.52 billion (approximately 7.234 trillion KRW), ranking second highest after Ethereum ($31.72 billion). Since the beginning of this month, Tron's total deposits increased by about $200 million, and despite the delisting announcement, the total deposits decreased by only $60 million.
Despite the recovery, the market is closely monitoring the situation following the actual delisting. The same applies domestically. Among major domestic exchanges, Upbit, Bithumb, Coinone, and Korbit continue to support Tron trading. A virtual asset industry official explained, "Since this is not an issue with the virtual asset itself, there are limits to taking any preemptive measures," but added, "Because it is uncertain how things will change once the delisting occurs, we will monitor the situation and respond accordingly afterward."
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