Binance CEO Changpeng Zhao cautioned crypto entrepreneur Justin Sun against attempting to farm SUI tokens using recently deposited TUSD stablecoins. Sun promptly apologized for the unintended actions and reversed them.
Sun moved over 115 million TrueUSD (TUSD) stablecoins to Binance, which can be staked on Binance Launchpool to farm SUI, Mysten Labs’ Sui Network’s native token. Zhao observed the substantial TUSD transfers and warned Sun against using the tokens to obtain Sui tokens via Launchpool, emphasizing that the platform serves retail users, not just a few large-scale investors.
Sun’s clarification and apology
Sun quickly explained that the TUSD transfer was for liquidity provision. Still, some of the stablecoins were mistakenly used to participate in exchange campaigns, which would have resulted in SUI token rewards.
He assured that the action would be reversed and apologized for the oversight. Sun also stated that Tron DAO Ventures, a partner market maker of TUSD, deposited the tokens for market-making purposes.
According to Sun, team members were unaware of the funds’ intended purpose and inadvertently used a portion for exchange campaigns. Sun contacted the exchange team for a full refund upon realizing the error.
Binance Launchpool, established in September 2020, allows users to earn newly launched tokens by staking BNB and other tokens. It differs from Binance Launchpad, a platform for purchasing new tokens. Despite this apparent miscommunication, Sun claims that he and Zhao maintain a close relationship, and the issue has been resolved.