Binance, the top cryptocurrency exchange, has made waves by announcing the end of supporting XRP, adding an unexpected twist to the market narrative. Despite this, the XRP price has shown a slight recovery, reflecting the resilience of investors amid these developments.
What’s Brewing Behind Binance’s Plan to Drop XRP?
Shocking the XRP community, Binance revealed it would stop supporting XRP and TUSD (TrueUSD) as margin assets in the Multi-Assets Mode. Effective May 28, 2024, at 06:00 (UTC), users will no longer be able to use these assets in Binance Futures. Plus, starting May 14, 2024, the transfer-in limit for XRP and TUSD in this mode has been set to zero. Any remaining balances post-May 28 will be automatically converted to USDT (Tether) within approximately 24 hours.
But before that, Binance has urged caution, advising users against adding new futures positions during the conversion period to avoid potential losses. The exchange also noted that users might not see the conversion reflected in their Transaction History, which could add complexity to the transition.
Legal Insight
This announcement comes around when the Ripple vs. SEC lawsuit is nearing its end. On May 13, Ripple filed omnibus letter motions to seal critical details, with CFO Jonathan Bilich supporting the move to protect sensitive financial information. Lawyer James K. Filan emphasized the importance of redacting Ripple’s financial figures, contract terms, and internal strategies to safeguard proprietary information.
Mitigating Disruptions
Binance’s decision to stop supporting XRP might have scared investors initially, but the automatic switch to USDT is meant to keep the market running smoothly. This strategic choice was made as part of Binance’s plan to streamline operations, respond to changing market conditions, and protect user interests.
Market Response
Following Binance’s announcement, XRP’s price increased by 0.51%, trading at $0.5059 at the time of writing. The trading volume rose by 4.46% to $815.87 million, with XRP touching a low of $0.4977 and a high of $0.5117 in the last 24 hours.
Do you think Binance’s decision to end the support will negatively impact the crypto market? Or Is it a hideout for Binance to minimize the SEC’s intervention? Well, only time will tell the consequences.
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