Binance, the renowned cryptocurrency exchange, has recently announced its decision to scale back its support for XRP, the seventh-largest cryptocurrency in terms of market capitalization. Binance Futures will no longer offer XRP and TUSD as margin assets in the Multi-Assets Mode, starting from May 28, 2024, at 06:00 AM (UTC).
The Multi-Assets Mode is a futures trading option that allows users to trade USDS-M Futures contracts using different cryptocurrencies as margin assets. Previously, users were able to use BTC, ETH, BNB, XRP, DOT, TUSD, and ADA as margin assets. However, as of May 28, Binance will no longer support XRP and TUSD in this mode.
The exchange has already begun preparations for delisting these assets by setting the transfer-in limit for XRP and TUSD to zero. After the deadline on May 28, Binance will automatically convert any remaining user balances of XRP and TUSD in USDS-M Futures wallets into USDT.
The conversion ratio for XRP will be based on the average price index of XRP/USDT between 05:00 (UTC) and 06:00 (UTC) on May 28. However, the conversion of TUSD balance will be done on a ratio of 1:1.
To avoid potential losses during the conversion process, users are advised to convert their XRP balance themselves before the May 28 deadline. Binance also warns users not to add any new futures positions during the conversion period to minimize the risk of losses.
The decision by Binance to delist XRP and TUSD as margin assets in the Multi-Assets Mode has sparked curiosity within the XRP community. A prominent community member, known as “WrathofKahneman,” questions the rationale behind Binance’s action. They suggest that Binance could have discontinued support for other assets with lesser value instead of axing XRP and TUSD. They further speculate that Binance may be preparing to replace XRP with the upcoming Ripple stablecoin to avoid potential conflicts from listing both assets.
The exact reasons behind Binance’s discontinuation of support for XRP in the Multi-Assets Mode remain unclear. At the time of writing, XRP is trading at $0.4992, experiencing a 1.16% decline in the past 24 hours.
Please note that this article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are strongly advised to conduct their own research before making any investment decisions, and The Crypto Basic will not be held responsible for any financial losses incurred.