The market has been significantly agitated by Binance, a major participant in the cryptocurrency exchange space, announcing that it will no longer support XRP. Despite all of the resulting repercussions of this choice, investors should consider a noteworthy detail. This intriguing aspect adds a layer of mystery to the evolving situation. In conclusion, as this development unfolds, the implications for the market remain to be seen. Additionally, XRP’s price saw a little rebound in spite of Binance’s recent news that it would no longer support it.
Binance Unexpectedly Removes Support For XRP
Unexpectedly, Binance announced it would no longer support XRP, one of the most popular cryptocurrencies available. With effect from May 28, 2024, at 06:00 (UTC), Binance Futures will no longer offer XRP and TUSD (TrueUSD) as margin assets in the Multi-Assets Mode. This decision was just published in an update.
Meanwhile, effective on May 14, 2024, at 06:00 (UTC), Binance announced the transfer-in limit for XRP and TUSD is zero. Furthermore, after May 28, 2024, at 06:00 (UTC), all TUSD and XRP balances in USDS-M Futures wallets will change to USDT. These changes will occur at predetermined ratios, and the process is expected to take about a day to complete.
To prevent potential losses, Binance simultaneously stresses caution to users and advises against adding fresh futures positions during the conversion period. Furthermore, the cryptocurrency exchange releases itself from all responsibility for any losses brought about by new positions during this changeover. Notably, users might need to see the conversion in their Transaction History, which complicates matters further.
Price Gains Acceleration Despite Legal Issues
Although investors may initially be uneasy about Binance’s decision to stop supporting XRP, the seamless conversion to the USDT feature helps to minimize any potential disruptions. Meanwhile, Binance hopes to protect user interests while streamlining processes and adapting to changing market dynamics. Such developments highlight market participants’ need to be vigilant and flexible as the Bitcoin ecosystem changes.
Following the Binance announcement, the price of XRP surged by 0.51% and was trading at $0.5059 at the time of writing. Its trading volume also increased, reaching $815.87 million, a rise of 4.46%. The price of XRP has fluctuated between $0.4977 and $0.5117 in the past 24 hours.
However, the announcement coincides with a significant development in the Ripple v. SEC action since omnibus letter petitions to seal essential details were filed on May 13. Jonathan Bilich, Ripple’s CFO, favors sealing documents and highlighting their privacy.
Notably, eminent attorney James K. Filan highlights this development. Bilich’s statement, however, emphasises how crucial it is to omit critical contract language, internal business plans, and Ripple’s financial data. This action is intended to protect Ripple’s confidential data amid the legal dispute.
Amid the current legal developments surrounding Ripple’s native cryptocurrency, XRP, discussions have been triggered by the most recent announcement from Binance.
