• Whale Alert reported a transfer of 56.1 million TUSD from Justin Sun to Binance.
• Binance CEO CZ warned Sun against using the funds to acquire LaunchPool Sui tokens, meant for retail users.
• Justin clarified that the transfer aimed to facilitate market-making and enhance liquidity and trading volume for TUSD.
Whopping Transfer Raises Red Flags
Whale Alert 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 largest cryptocurrency exchange in the world. This caused some red flags with Binance’s CEO Changpeng Zhao “CZ” warning Sun against using the funds to acquire LaunchPool Sui tokens meant for retail users instead of being monopolized by a few wealthy individuals.
Purpose Behind Transfer
Justin Sun replied to CZ’s tweet clarifying the purpose behind the transfer which was made by TRON DAO Venture; a partner market maker for TUSD with an objective of facilitating market-making between leading TUSD exchanges in order to enhance liquidity and trading volume rather than participating in exchange promotions.
Total Trading Volume Achieved
Sun added that within a few hours their market maker had achieved a total trading volume of $40 million, contributing to the stability of TUSD’s price but some team members were not aware of this as they inadvertently used a portion of them on exchange campaigns instead.
Upon recognizing this mistake, Sun contacted exchanges involved and requested them to return any unused funds while apologizing on behalf of his team members who took part in those campaigns without informing him first or seeking approval beforehand.
Benefits Of Blockchain Technology
The transparency provided by blockchain technology proved beneficial here as it enabled CZ as well as other stakeholders such as Whale Alert track this transaction easily despite its size which would have otherwise been impossible without blockchain technology available today..