Very bad news for TRX as Circle decides to stop supporting USDC on the TRON network

Ahead of its IPO plans, Circle decided to cut ties with the Tron (TRX) crypto network.

Circle is a popular stablecoin company that manages all financial operations for the USDC stablecoin. In 2023, Circle underwent several changes to its financial control activities, which helped Circle maintain a more secure and transparent position in the world.

On February 21, 2024, Circle announced that the company would terminate USDC support on the Tron (TRX) network, effective immediately.

Therefore, starting today, Circle will no longer issue USDC on the Tron network and USDC users will need to transfer their USDC to other supported networks or contact Circle directly to exchange it for fiat.

According to the report, this latest decision is part of reducing the risk factors associated with the Circle & Tron network relationship.

Some experts claimed that Circle’s decision to end Tron support was directly related to Tron founder Justin Sun.

However, Justin withdrew from the Tron project in December 2021 and announced his withdrawal from cryptocurrency-related activities at the time, but is still deeply active in the cryptocurrency sector.

In March 2023, the U.S. Securities and Exchange Commission (SEC) charged Justin with promoting and offering unregistered securities assets in a U.S. jurisdiction without authorization.

In this matter, the SEC agency indicted another eight people who sponsored Justin’s cryptocurrency assets.

So far, Justin has denied all the allegations and it is very likely that he will not be going to the United States. He obviously won’t face any punishment.

TRX Price Action

The current trading price of TRX Coin is $0.14, which is 2.63 higher than the last 24 hours trading price.

Some people claimed that Justin was buying TRX coins in large quantities to lessen the impact of the Circle news.

Also Read: OpenAI’s Performance Is Playing a Significant Role in the Worldcoin (WLD) Pump