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Following Changpeng “CZ” Zhao’s warnings, Justin Sun has revealed on Twitter the real reasons for depositing TUSD stablecoins to Binance.
While reiterating his intention not to participate in exchange activities, Sun stated that the main goal of the transfers was to balance the price differentials of TUSD and boost the liquidity of unsettled orders and trading volume.
To back his claim, Sun highlighted that TRON DAO Venture has executed a total transaction volume of $40 million in the last few hours, thus contributing to TUSD price stability.
Since CZ’s callout as reported earlier by Coingape, Sun has been receiving backlash from the online community.
“Be gentle, be a good human, be fair to others please,” says a Twitter user @#RLRICH. Some others believe Sun was trying to perpetuate a pump-and-dump scheme.
Noteworthy, a pump-and-dump scheme in crypto refers to a fraudulent tactic used to manipulate the price of a digital token. In this scheme, a group of individuals with significant holdings in a particular cryptocurrency, known as “whales,” coordinate to artificially inflate the price of the cryptocurrency.
When the price reaches a specific level, the whales profitably sell their holdings, causing the price to fall dramatically and leaving other investors with losses. It is worth noting that this method is illegal and can be extremely detrimental to the crypto market as a whole.
Notably, the Tron founder has since apologized for the transfers, claiming that it was in error by some team members who were unaware of the intended purpose of the funds.
Justin Sun Amidst Controversies
Remarkably, Justin Sun has been involved in a number of controversies throughout his career. In March, the SEC announced that it would sue Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry over the sale of Tron (TRX) and BitTorrent (BTT) tokens, which it deems to be unregistered crypto asset securities.
Similarly, Sun was accused of participating in insider trading by pushing JUST, a cryptocurrency project created on the TRON network. The charges were predicated on a tweet by Sun that indicated an imminent announcement, causing the price of JUST to rise.
Despite these controversies, TRON continues to be a popular blockchain project, and Sun remains an influential figure in the cryptocurrency space.
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