• Whale Alert reported a transfer of 56.1 million TUSD (equivalent to $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.
Justin Sun Makes Whopping Transfer To Binance
Whale Alert recently reported a transfer of 56.1 million TUSD (approx. $56.4 million) from Justin Sun, founder of TRON and owner of Huobi Global, to Binance, the world’s largest cryptocurrency exchange.
CZ Warns Against Monopolizing Exchange Promotion
Binance’s CEO Changpeng Zhao “CZ” responded by warning Justin Sun against using transferred funds to participate in Binance’s LaunchPool Sui token event, which was intended as an airdrop for retail users rather than being monopolized by few wealthy individuals.
Sun Clarifies Purpose Behind Transfer
Justin Sun clarified that the primary objective behind the transfer was to facilitate market-making between leading TUSD exchanges in order to enhance its liquidity and trading volume, rather than participating in exchange promotions. He went on to say that within a few hours their market maker had achieved a total trading volume of $40 million, contributing towards stability of TUSD’s price.
Team Members Participated In Exchange Campaigns Without Knowing Intended Purpose Of Funds
Unfortunately some team members participated in exchange campaigns without knowing the intended purpose of these funds; however this mistake was soon identified and corrected after contacting the relevant exchanges directly.
Conclusion
This incident highlights both transparency provided by blockchain technology as well as importance of communication within teams while handling large amounts of funds through crypto transfers in order avoid any potential mishaps or misunderstandings that could arise due to lack thereof.