Binance Futures to Remove XRP and TUSD as Margin Assets, Converting to USDT

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As an experienced financial analyst, I believe that Binance’s decision to cease supporting XRP and TUSD as margin assets on its Futures platform is a significant development that could potentially impact the price and adoption of XRP.

Starting May 28, 2024, at 06:00 UTC, Binance Futures – a division of the well-known cryptocurrency exchange platform Binance – has announced that it will no longer permit users to use XRP and TUSD as margin assets. This decision was made public today, and the transfer limit for these two digital currencies into the USDⓈ-M Futures wallets for margin trading has already been set at zero since 06:00 UTC.

After the deadline, any unused XRP and TUSD in users’ USDⓈ-M Futures wallets will be converted into USDT (Tether). This conversion process aims to prevent users’ funds from being stranded on the platform. For clarity, the exchange rate for converting XRP to USDT will be determined by the average price of XRPUSDT during the hour of 05:00 UTC to 06:00 UTC on May 28, 2024. TUSD, on the other hand, will be exchanged at a rate of 1 TUSD for 1 USDT.

During the fund conversion process from XRP and TUSD to USDT, Binance users are advised against opening new futures positions. This measure is taken to shield traders from potential losses that could arise during the conversion period, as the exchange will not assume responsibility for any trades incurred during this time. Additionally, users have been made aware that their XRP and TUSD balance conversions may not show up immediately in their transaction history.

XRP’s Ongoing Legal Battle with the SEC: Impact on Price and Adoption

Amidst the ongoing legal dispute between the SEC and Ripple over XRP, the cryptocurrency company recently asked the court to conceal crucial aspects of documents pertaining to the case’s resolutions. A judgment in the lawsuit against Ripple is still pending, contributing to the coin’s slumping price.

I’ve noticed a significant downturn in XRP‘s value since the beginning of this month, with over 15% being shaved off in just the past three weeks. Yet, there are indications of a potential rebound, as evidenced by the uptick in price action and green candlesticks, suggesting that bullish activity is underway. Nevertheless, it’s important to keep in mind that this recovery may not be sustainable.

As a crypto investor, I can’t help but express concern over Binance’s recent announcement to cease support for XRP as a margin trading asset. While Binance hasn’t explicitly connected this decision to the ongoing Ripple court case, speculation is rife that there may be some connection. The potential fallout from this news could generate negative sentiment towards XRP and dampen its price growth in 2023, as we have seen since 2019. Moreover, the imminent mass withdrawal or conversion of XRP to other cryptocurrencies might further exacerbate the downward pressure on the coin’s price.

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2024-05-14 16:00