Binance, the renowned cryptocurrency exchange, has unveiled its plans to scale back its support for XRP, the seventh-largest cryptocurrency on the market. The exchange will be delisting XRP as a margin asset in its Multi-Assets Mode, effective May 28, 2024, at 06:00 AM (UTC).
The Multi-Assets Mode is a futures trading feature that enables users to trade USDS-M Futures contracts using various cryptocurrencies as margin assets. Currently, supported margin assets include BTC, ETH, BNB, XRP, DOT, TUSD, and ADA. However, beginning May 28, Binance will cease its support for XRP and TUSD.
In preparation for this move, the exchange has already updated the transfer-in limit for XRP and TUSD to zero. After the May 28 deadline, any remaining user balances of XRP and TUSD in USDS-M Futures wallets will be automatically converted into USDT. The conversion ratio for XRP will be determined based on the XRP/USDT average price index between 05:00 (UTC) and 06:00 (UTC) on May 28. On the other hand, the TUSD balance will be converted on a 1:1 ratio.
To avoid potential losses during the conversion, users are advised to manually convert their XRP balance before the May 28 deadline. Additionally, Binance has cautioned users against opening new futures positions during the conversion period to mitigate any potential losses.
The news of Binance’s decision to delist XRP and TUSD as margin assets in the Multi-Assets Mode has garnered attention from the XRP community. One prominent community member, known as “WrathofKahneman,” expressed curiosity about the reasoning behind Binance’s action. They questioned whether Binance expected increased price volatility for XRP or if there were financial constraints or political factors at play.
Speculation has also arisen within the community that Binance may be preparing to replace XRP with the upcoming Ripple stablecoin. It is suggested that Binance aims to avoid potential conflicts that may arise from listing both assets simultaneously.
The exact motivation behind Binance’s discontinuation of support for XRP as a margin asset in the Multi-Assets Mode remains unclear. As of now, XRP is trading at $0.4992, reflecting a 1.16% decrease in value over the past 24 hours.
Disclaimer: This article serves as informational content and should not be regarded as financial advice. The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic holds no responsibility for any financial losses incurred.
