Binance, one of the world’s leading cryptocurrency exchanges, has announced the discontinuation of support for XRP, effective May 28, 2024, at 06:00 (UTC). This move, disclosed through a recent update, impacts XRP and TUSD (TrueUSD) as margin assets in the Multi-Assets Mode.
Transition to USDT Conversion
Effective May 14, 2024, the transfer-in limit for XRP and TUSD has been reduced to zero. Following the cutoff date, the remaining balances of XRP and TUSD in USDS-M Futures wallets will undergo automatic conversion to USDT (Tether) within approximately 24 hours.
Binance’s Cautionary Advice
In light of this transition, Binance advises users to exercise caution and refrain from adding new futures positions during the conversion period to mitigate potential losses. It’s important to note that users may not immediately see the conversion reflected in their Transaction History.
The automatic conversion to USDT aims to minimize disruptions for users amidst these changes. However, Binance has stated that it absolves itself of liability for any losses incurred due to new positions during this transition period.
Market Response and Legal Context
Despite Binance’s announcement, XRP experienced a slight price decline, trading at $0.5071 with a 0.51% decrease, alongside a 9.36% increase in trading volume to $1,053,944,613. This development coincides with ongoing legal challenges faced by Ripple, the company behind XRP.
Recently, Ripple‘s CFO, Jonathan Bilich, advocated for sealing documents to safeguard sensitive financial information amidst the Ripple vs. SEC lawsuit. Legal expert James K. Filan emphasized the importance of confidentiality to protect proprietary information regarding Ripple’s financial figures, contract terms, and internal business strategies.
Dynamic Nature of the Cryptocurrency Market
Binance’s decision to cease XRP support, coupled with the legal developments surrounding Ripple, underscores the dynamic and evolving nature of the cryptocurrency market. As regulatory and market dynamics shift, industry players must adapt to meet new challenges and opportunities.
