Coinspeaker Binance Futures to Remove XRP and TUSD as Margin Assets, Converting to USDT
Binance Futures, a division of Binance, a leading crypto exchange platform, has declared that it will cease to support XRP and TUSD as margin assets. This latest development is slated to take effect on May 28, 2024, at 06:00 UTC. In a swift action by the exchange company, it has already set the transfer-in-limit for the two cryptocurrencies to zero as of 06:00 UTC today, which is a means of preventing users of the platform from depositing the digital assets into their USDⓈ-M Futures wallets for margin trading.
The exchange further disclosed that any XRP and TUSD that are not withdrawn in users’ USDⓈ-M Futures wallets after the deadline will be automatically converted into USDT (Tether), a move that will ensure the users’ funds are not left stranded on the platform. To ensure transparency in the conversion process, it was revealed that the exchange rate of XRP into USDT will be based on the average XRPUSDT price index. It will be calculated from 05:00 UTC to 06:00 UTC on May 28, 2024, while TUSD will be converted at a 1:1 ratio, which means the coin will be exchanged for one USDT.
Binance users are, however, cautioned not to open new futures positions during the conversion period. This is to prevent traders from experiencing potential losses during fund conversion from XRP and TUSD to USDT, as the exchange will not be liable for any losses incurred on any new trade during this period. Similarly, traders on the platform have also been informed that the conversion of XRP and TUSD balances may not immediately reflect in their transaction history.
XRP’s Ongoing Legal Battle with the SEC: Impact on Price and Adoption
This announcement comes amid the ongoing legal battle between the SEC and Ripple XRP. Recently, Ripple filed a motion requesting the court to seal certain key details related to documents concerning the case’s remedies. The lawsuit against Ripple has yet to be decided, which has been part of the reason why the coin’s price has been dragging.
XRP has been dropping since early this month, experiencing an over 15% drop in the last three weeks. However, the coin shows signs of recovery, as price action is trading in the green candlestick, reflecting that bullish activities are ongoing. However, the recovery could be short-lived.
The announcement by Binance to stop supporting XRP could have some negative sentiment on the coin as various speculations about the possible reasons are expected to start flying. Although Binance did not link the decision to stop supporting XRP as a margin asset to the ongoing Ripple court issue. The fear of such a move could increase the negative sentiment towards the coin, which could still affect the price growth this year as it has been since 2019. The massive XRP withdrawal or conversion to other crypto assets, which is expected to happen in the next few days, could also cause the price to dip more.
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Binance Futures to Remove XRP and TUSD as Margin Assets, Converting to USDT