Binance CEO Changpeng Zhao has announced that he will prevent crypto entrepreneur Justin Sun from farming SUI tokens with his $56.1 million True USD (TUSD) deposit. This follows Whale Alert’s report on May 1st that Sun had made the deposit, leading to speculations that he was attempting to farm the SUI token through LaunchPool.
CZ Zhao allayed the community’s fears by stating that Binance had warned Sun that it would “take action” against him if he tried to farm the tokens. The LaunchPool is designed for retail users to receive airdrops, not just for a few whales. The Binance Sui LaunchPool enables users to stake TUSD and BNB to farm SUI tokens over the next two days. As of now, there are $558.8 million TUSD and 9.2 million BNB tokens staked in the pool.
Justin Sun’s Response
Sun responded by stating that Tron DAO Venture made the transfer in its role as a cooperative market maker for TUSD. He added that the deposit was meant to level the TUSD price difference and increase the liquidity of pending orders and trading volume. However, despite the claim that the funds were not meant for participating in activities on exchanges, it appears that part of the funds has been staked on SUI LaunchPool. Sun admitted that this was a mistake by colleagues who did not understand the purpose of the funds.
Not everyone believes Sun’s response, with some thinking that he is only backtracking after being called out publicly. Sun is known for being smart money and has used his access to funds to make very profitable trades. For example, he profited around $3 million by capitalizing on the USDC depeg.
Binance has prevented Justin Sun from farming SUI tokens with his $56.1 million TUSD deposit, and CZ Zhao has reassured the community that the LaunchPool is meant for retail users. Justin Sun has claimed that the deposit was meant to level the TUSD price difference and increase liquidity, but there are doubts about his intentions. The controversy highlights the importance of transparency and accountability in the cryptocurrency industry.