Binance Futures will stop using XRP and TUSD as margin assets and switch to USDT instead

The news that Binance would no longer offer XRP has the potential to dampen enthusiasm for the currency, as many theories regarding the reasons behind the decision are sure to circulate.

The prominent cryptocurrency exchange Binance has announced that its futures branch, Binance Futures, would no longer accept XRP and TUSD as margin assets. At 6:00 UTC on May 28, 2024, this most recent change is scheduled to be implemented.

In addition, the exchange said that after the deadline, any XRP and TUSD that remain in users’ USDⓆ-M Futures wallets would be automatically changed into USDT (Tether). This is to prevent customers’ funds from being stuck on the platform. The revelation that the average XRPUSDT price index would serve as the basis for the XRP/USDT exchange rate fosters transparency in the conversion process. As on May 28, 2024, the calculation will take place between 5:00 and 6:00 UTC, and one TUSD will be swapped for one USDT token.

On the other hand, Binance users should refrain from opening new futures contracts while the conversion is underway. That way, traders won’t have to worry about losing money when they convert their XRP and TUSD funds to USDT. The exchange will also cover any losses from new trades made during that time, so there’s no risk. It may take some time for the switch between XRP and TUSD to show up in a trader’s transaction history.

The SEC and Ripple XRP are now embroiled in a legal dispute, which has coincided with this statement. In a recent move, Ripple asked the court to keep secret certain information about papers pertaining to the remedies in the case. One reason the price of the currency has been falling is because the verdict in the case against Ripple is still pending.

XRP’s price has been falling since the beginning of the month, and it has fallen by more than 15% in the last three weeks alone. But now that price action is trading in the green candlestick, it seems like bullish actions are continuing, so maybe the coin will rebound. Nonetheless, the recovery might be transitory.

The news that Binance would no longer offer XRP has the potential to dampen enthusiasm for the currency, as many theories regarding the reasons behind the decision are sure to arise. Despite the fact that Binance did not mention the Ripple court case when they said they will no longer offer XRP as a margin asset. The bad feeling towards the currency might worsen if this move goes through, which has been a problem since 2019 and could continue to impact price growth this year. Additional price drops might be in store for XRP due to the impending large-scale withdrawal or conversion of the cryptocurrency to other assets.

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