Binance's decision to discontinue support for XRP and TUSD could potentially impact the sentiment surrounding the coin, sparking various speculations about the underlying reasons.
Binance Futures, a segment of the prominent crypto exchange platform, has announced its plans to halt support for XRP and TUSD as margin assets. This move is scheduled to come into effect on May 28, 2024, at 06:00 UTC. In a proactive measure, the exchange has already set the transfer-in limit for both cryptocurrencies to zero as of 06:00 UTC today, preventing users from depositing these digital assets into their USDⓈ-M Futures wallets for margin trading.
Furthermore, the exchange has clarified that any remaining XRP and TUSD balances in users' USDⓈ-M Futures wallets after the deadline will be automatically converted into USDT (Tether).
This conversion aims to ensure that users' funds are not left stranded on the platform. To maintain transparency throughout the conversion process, the exchange rate for XRP to USDT will be determined based on the average XRPUSDT price index calculated from 05:00 UTC to 06:00 UTC on May 28, 2024. On the other hand, TUSD will be converted at a 1:1 ratio, with one coin being exchanged for one USDT.
Users are advised against opening new futures positions during the conversion period to avoid potential losses. Binance will not be held liable for any losses incurred on new trades during this period. Additionally, traders should note that the conversion of XRP and TUSD balances may not immediately reflect in their transaction history on the platform.
Effects of XRP's Prolonged Legal Battle with the SEC on Adoption and Price
This announcement coincides with the ongoing legal dispute between Ripple XRP and the SEC. In a recent move, Ripple asked the court to seal important information about documents pertaining to the case's remedies. The fact that the litigation against Ripple is still pending is one of the factors contributing to the coin's dismal price.
Since the beginning of the month, XRP has been declining, falling by more than 15% throughout the previous three weeks. The green candlestick, which indicates that bullish activity is still happening, indicates that the cryptocurrency is showing indications of recovery. Still, the recuperation might not last long.
The news that Binance will no longer be supporting XRP may cause some bad feelings toward the coin, as several theories on the potential causes are sure to start circulating. Yet, Binance made no mention of the ongoing Ripple court dispute in connection with its decision to cease offering XRP as a margin asset. The coin's bad perception could rise as a result of this anxiety, which would continue to hinder price growth this year as it has since 2019. The anticipated large-scale XRP withdrawal or conversion to other cryptocurrency assets within the next few days may potentially further depress prices.
May 2024, Cryptoniteuae