Peter Smith
Binance discontinues XRP support but offers automatic USDT conversion, prompting a slight price recovery amid ongoing legal battles.
Binance Drops XRP Support With An Unexpected Turn
In a surprising move, Binance has declared the termination of support for XRP, one of the leading cryptocurrencies in the market. This decision, announced via a recent update, highlights Binance Futures discontinuing support for XRP and TUSD (TrueUSD) as margin assets in the Multi-Assets Mode, effective from May 28, 2024, at 06:00 (UTC).
Meanwhile, according to Binance’s statement, the transfer-in limit for XRP and TUSD in Multi-Assets Mode has been revised to zero as of May 14, 2024, at 06:00 (UTC). In addition, any remaining balances of XRP and TUSD in USDS-M Futures wallets post-May 28, 2024, 06:00 (UTC) will be automatically converted to USDT (Tether) at specified ratios within approximately 24 hours.
Simultaneously, Binance emphasizes caution to users, advising against adding new futures positions during the conversion period to avoid potential losses. In addition, the crypto exchange absolves itself of liability for any losses incurred due to new positions during this transition. Notably, users may not see the conversion reflected in their Transaction History, adding a layer of complexity to the process.
Price Regains Momentum Amid Legal Woes
While Binance’s decision to cease support for XRP may initially unsettle investors, the provision of automatic conversion to USDT mitigates potential disruptions. Meanwhile, this strategic move by Binance aims to streamline operations and align with evolving market dynamics while safeguarding users’ interests. As the cryptocurrency landscape continues to evolve, such announcements underscore the need for vigilance and adaptability among market participants.
Meanwhile, the XRP price soared 0.51% following the Binance announcement, and traded at $0.5059 during writing, while its trading volume rose 4.46% to $815.87 million. Over the last 24 hours, the XRP price has touched a low of $0.4977 and a high of $0.5117.
Legal Developments Amid Binance Announcement
The news comes amid a time when the Ripple vs. SEC lawsuit takes a new direction with the filing of omnibus letter motions on May 13 to seal crucial details. Ripple’s CFO, Jonathan Bilich, supports sealing documents, emphasizing their confidentiality. Notably, renowned lawyer James K. Filan highlights this development. Meanwhile, Bilich’s declaration underscores the importance of redacting Ripple’s financial figures, sensitive contract terms, and internal business strategies. This move aims to safeguard Ripple’s proprietary information amid the legal battle.
The latest Binance announcement has sparked discussions amid the ongoing legal development around Ripple’s native crypto XRP. Traders and enthusiasts alike are closely monitoring the implications of Binance’s decision on the broader XRP ecosystem and its market performance. With regulatory uncertainties and market dynamics at play, the fate of XRP remains subject to ongoing developments both within and outside the crypto space.
Conclusion
Binance’s decision to cease support for XRP and facilitate automatic conversion to USDT adds a new dimension to the evolving narrative surrounding the embattled cryptocurrency. As legal proceedings unfold and market forces continue to shape the crypto landscape, investors are advised to stay informed and exercise caution in navigating the complexities of this dynamic market environment.
Peter Smith
