Community sentiment soured around Huobi, which has Tron founder Sun as an adviser, after it said it will lay off hundreds of staff in coming weeks.

The price of Tron (TRX), the 18th-largest token by market capitalization, tumbled Friday amid tensions stemming from crypto exchange Huobi as the broader crypto market held steady.

Tron founder Justin Sun sits on Huobi’s advisory board. The exchange said Friday it will cut headcount by 20% and require employees to take their salaries in stablecoins. It also closed internal staff communication channels to quell a rebellion, according to reports on Twitter.

TRX fell nearly 8% in the past 24 hours, data shows. The price is above a support level of 5 cents, and if it drops below, the tokens could slip to as low as 3 cents, price charts show. Huobi’s native HT exchange tokens have lost as much as 11% in the past 24 hours.

The Tron-based stablecoin USDD fell 3 cents, effectively losing its intended peg to the U.S. dollar. Such price action caused the value locked on Tron-based decentralized applications to fall by 2%, DeFiLlama data shows.

As such, futures tracking TRX saw under $1 million in liquidations on exchanges, suggesting the selling was mostly spot driven. Spot refers to actual tokens, while futures are derivative financial instruments that allow traders to bet on the prices of the underlying tokens.

Meanwhile, security firm PeckShield noted on Twitter that crypto wallet addresses linked to Sun moved over $50 million to crypto exchange Binance.

The fund movements came amid speculation among Twitter users about the overall health of Huobi and the safety of customer funds. Data from blockchain analytics Nansen showed Huobi had seen some $60 million in fund outflows over the past 24 hours.

Sun, Tron, and Huobi did not immediately respond to CoinDesk’s requests for comment.

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Binance announced it would not acquire FTX earlier Wednesday.

Justin Sun, the founder of the Tron cryptocurrency network and Grenada’s ambassador to the World Trade Organization, tweeted late Wednesday that he and his team were “putting together a solution” with beleaguered cryptocurrency exchange FTX, hours after Binance announced it would not move forward in a deal to acquire the company.

Sun provided no details, only saying that his team “has been working around the clock to avoid further deterioration.” Sam Bankman-Fried, the CEO of FTX, retweeted Sun’s tweet.

Sun’s tweet did not make clear whether this solution would rescue FTX as an entity or only backstop the Tron-related tokens held on the exchange.

FTX stunned the crypto industry on Tuesday when founder Bankman-Fried announced that it was facing liquidity issues only days after tweeting that the exchange was “fine.” At the time, Bankman-Fried said he had come to an agreement to conduct a transaction with Changpeng “CZ” Zhao, the founder of Binance. CZ later clarified it was a nonbinding letter of intent to acquire FTX.

Binance backed away from the deal earlier on Wednesday, saying that after looking at FTX’s books, “the issues are beyond our control or ability to help.”

Questions arose about FTX sister company Alameda Research’s solvency after CoinDesk published a report on its balance sheet, finding that a hefty chunk of Alameda Research’s assets were composed of the FTT token, an exchange token issued by FTX. Bankman-Fried and other FTX and Alameda executives sought to downplay the concerns over the next week, before Bankman-Fried’s surprise announcement.

As a result of the scuttled Binance agreement announcement, numerous regulatory agencies have hinted that they are investigating or broadening investigations into the company, including the U.S. Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission. These agencies are looking at how FTX handled client funds, among other concerns, according to reports from Bloomberg and The Wall Street Journal.

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The Caribbean island’s government may accept native Tron tokens such as TRX and USDT for public payments including taxes, under a new ordinance.

Blockchain network Tron has entered into an agreement with the government of Dominica to issue a national fan token to promote the Caribbean island’s heritage and tourism, according to an announcement dated Oct. 7.

Under the agreement, the Tron protocol is the island nation’s “designated national blockchain infrastructure.” An ordinance issued on the same day shows that the Tron network’s native digital tokens were granted “statutory status,” meaning they are now authorized for use as a medium of exchange in the country.

The government may accept Tron governance tokens such as TRX, BTT and JST, as well as stablecoins pegged to the U.S. dollar on Tron’s TRC20 protocol such as USDT and USDD, as payment for public services including tax payments, the order says. Private enterprises can also accept these cryptocurrencies as payment “where necessary infrastructure for transaction is available.”

With the endorsement, Tron is also set to issue Dominica Coin (DMC), a blockchain-based fan token to “help promote Dominica’s global fanfare for its natural heritage and tourism attractions,” according to the government.

It is unclear how Tron was chosen for the task, but the “open and cost-effective nature” of the protocol will play a “vital role to better integrate Small Island Developing States like Dominica into the global economy in the future,” Dominica’s Prime Minister Roosevelt Skerrit said in a press statement.

Tron founder Justin Sun stepped down as the network’s CEO to become Carribbean nation Grenada’s ambassador to the World Trade Organization last year. He said at the time that he would focus on legitimizing crypto in Latin American countries.

In Dominica, the exchange rates between Tron’s native tokens and the East Caribbean dollar (XCD) will be freely determined by the market, while exchanges between the tokens and the XCD will not be subject to capital gains tax, the ordinance says.

CoinDesk has reached out to the Dominica government and Tron for comment.

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