Justin Sun transferred 56 million TUSD to Binance earlier today.
The transaction was flagged by the crypto community who accused Sun of farming today’s SUI airdrop.
Binance CEO Changpeng Zhao warned Sun against using the whale transfer to farm SUI by staking the TUSD.
The Tron founder has issued an apology to Zhao for the misunderstanding over the whale transaction.
Tron founder Justin Sun has issued an apology to Binance CEO Changpeng Zhao after getting called out for attempting to participate in the Binance Launchpool for SUI, the native token of the layer 1 blockchain Sui using a whale transaction.
Justin Sun Claims Whale Transaction Was To Stabilize TUSD
The controversy started earlier today after Justin Sun transferred 56 million TUSD to Binance. Whale watchers on Twitter flagged the transfer as a whale transaction, leading to considerable speculation among the crypto community. Crypto Twitter concluded that Sun was attempting to farm SUI’s airdrop by staking millions of TUSD, brewing further controversy.
Sun defended his actions by claiming that the transfer was part of Tron DAO Venture’s efforts as TUSD’s cooperative market maker to stabilize the price of the stablecoin. He clarified that the purpose was not to participate in Binance’s activities including the launchpool for SUI.
The Tron founder acknowledged that some of his colleagues had used part of the funds to participate in the launchpool and farm SUI tokens because they “did not understand the purpose of the funds.” This was followed by Binance CEO Changpeng Zhao issuing a public warning to Justin Sun regarding his participation in the airdrop.
Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will “take action against it”. SMH. Binance LaunchPool are meant as air drops for our retail users, not just for a few whales.”
Changpeng Zhao, Founder and CEO of Binance
Justin Sun responded and stated that the TUSD deposit was meant for facilitating market-making between leading TUSD exchanges and not participating in the airdrop. However, he again acknowledged that some members of his team “inadvertently” used some of the funds to farm the SUI airdrop. “We sincerely apologize for this oversight,” Sun tweeted.