TRX coin plunged by 8%, just after BinanceUS announced that it will terminate its support for TRX coin.
Tron blockchain is a popular Proof-of-stake (PoS) blockchain network and TRX is a native coin on this network. Popular crypto personality Justin Sun is the founder of Tron Blockchain. Justin is no longer at any official position in the Tron blockchain project, as he stepped down from his crypto job in late 2021.
On 12 April 2023, BinanceUS, an independent American subsidiary of Binance.com crypto exchange, announced that the exchange decided to terminate support for TRX coin and Spell coin, on behalf of the asset review process.
The announcement also confirmed that the exchange will close TRX staking support on 13 April and later terminate all kinds of deposit & trade support on 17 April.
US SEC vs Justin Sun
In March 2023, The United States Securities and Exchange Commission (SEC) initiated fraud Charges against Justin Sun over unregistered securities offerings in the US without any registration.
Under the Lawsuit, the SEC body also dragged Tron Foundation, the BitTorrent Foundation, and Rainberry Inc.
Because of this news, the TRX coin faced high sell pressure but suddenly recovered.
The below attached TRX price graph shows that TRX was down by 7.42% for some hours.
BinanceUS banking crisis
Recently a Wall Street Journal (WSJ) report claimed that Binance is facing a huge problem in the US because of the ongoing regulatory crypto crackdown.
The report noted that BinanceUS failed to get any new banking partner, as most crypto-friendly US banks Signature & Silvergate collapsed.