Sui is a high-performance Tier 1 blockchain based on the Delegated Proof of Ownership or DPoS consensus protocol. It is being developed by Mysten Labs, a startup founded by former executives from Meta’s crypto division. The project is being developed using the Move programming language, which was originally intended for Meta’s now-closed Diem crypto project.

The project has caught the attention of investors looking for promising new assets to invest in. With this in mind, cryptocurrency exchange Binance decided to participate in the launch of Sui, which launched a so-called longchannel – a platform for launching new tokens.

The logic behind the longchpool is quite simple: users need to perform a certain action, through which they will receive new coins. This is usually followed by adding a new token to the exchange, allowing a trade to take place.

In the case of SUI, users are encouraged to stake their own BNB or TUSD steblecoin. The more coins a particular user sends to the stack, the larger their final reward in Sui will be. In this way, Binance not only attracts traders and stimulates demand for the BNB native token, but in addition receives additional liquidity, which positively affects the terms of transactions.

Sui's initial supply will be 528,273,717 coins, which is 5.28 per cent of the total. At the same time, Binance's longchip participants can get 40 million SUI or 0.4 per cent of the cryptocurrency's total supply.

As stated on the pool page, 80 per cent of the total reward will go to BNB stackers, while the remaining 20 per cent is for TUSD stackcoin holders. This is what Tron creator Justin Sun eventually decided to take advantage of, transferring 56 million TUSD to the exchange.

What’s going on with the SUI listing

Justin Sun’s large TUSD transaction was initially reported by the Whale Alert bot on Twitter. It monitors blockchain transfers potentially associated with large coin holders.

According to Decrypt’s sources, Zhao responded to Whale Alert’s tweet and noted that the Binance team had warned San about the specifics of Sui distribution. Here is the relevant quote from Chanpen with which he drew attention to what was going on.

Our team representatives informed Justin that if he uses any part of these coins in the SUI Launchpad, we will “take action against it”. Somehow.

The Binance LaunchPool is for eirdrop to retail users, not just a few whales. And speaking of good things, blockchains are transparent.

The bottom line is that 56 million in TUSD is a large amount that ordinary users of the Binance cryptocurrency do not even come close to having. Accordingly, putting those coins into stacking would result in most of the reward for farming SUI being accrued to San specifically, not to the average customer of the trading platform. Zhao is certainly not interested in this, so he has made his own position clear.

Here’s what San has responded to this.

TRON DAO Venture is an affiliate market maker for TUSD, so the main purpose of the coin offering is to facilitate market makings between leading TUSD-supported exchanges and to increase liquidity and trading volume, not to participate in any exchange promotions.

San then claimed that “some members of his team” were allegedly unaware of the true purpose of the funds and had in the past used some of them to participate in the exchange’s campaigns. The Tron founder apologised to Zhao and admitted the mistake. What’s more, San has returned the coins that were mined by leveraging Stablecoins into Binance shares. Here is the quote cited by Coindesk.

Unfortunately, some members of our team did not fully understand the purpose of these assets, and therefore inadvertently used some of them to participate in the exchange’s campaigns. We realised this mistake and immediately contacted the exchange representatives to arrange a full refund.

The launch of the Sui network is scheduled for Wednesday. The project was the 33rd initiative to debut on Binance’s Launchpad platform. Regular investors are expected to be the first tokens to make their distribution more advantageous from a decentralisation perspective.

When Sui's liquidity meets Binance's requirements, the exchange will include the token in SUI/BTC, SUI/USDT, SUI/TUSD and SUI/BNB trading pairs. As of today, users have added more than ten million BNB equivalent to over $3 billion to the BNB Launchpool and more than $770 million to the TUSD pool.


We believe that this situation ended in a generally positive way, as most of the new coins will indeed go to regular users of the Binance cryptocurrency exchange. However, in the future, the platform should clearly hedge against similar cases where it needs to manually ban certain bidders. As some users have suggested, a cap on the maximum number of tokens received could be introduced. In that case, the campaign would probably not interest Justin Sun and other wealthy investors.