Binance, a prominent player in the cryptocurrency exchange arena, has stirred the market by announcing the cessation of support for XRP. However, amidst the ripple effect caused by this decision, there’s a notable catch that investors need to pay attention to, adding intrigue to the unfolding scenario. Besides, the XRP price also noted a slight recovery despite the recent announcement of Binance discounting its support.

Binance Drops XRP Support With An Unexpected Turn

In a surprising move, Binance has declared the termination of support for XRP, one of the leading cryptocurrencies in the market. This decision, announced via a recent update, highlights Binance Futures discontinuing support for XRP and TUSD (TrueUSD) as margin assets in the Multi-Assets Mode, effective from May 28, 2024, at 06:00 (UTC).

Meanwhile, according to Binance’s statement, the transfer-in limit for XRP and TUSD in Multi-Assets Mode has been revised to zero as of May 14, 2024, at 06:00 (UTC). In addition, any remaining balances of XRP and TUSD in USDS-M Futures wallets post-May 28, 2024, 06:00 (UTC) will be automatically converted to USDT (Tether) at specified ratios within approximately 24 hours.

Simultaneously, Binance emphasizes caution to users, advising against adding new futures positions during the conversion period to avoid potential losses. In addition, the crypto exchange absolves itself of liability for any losses incurred due to new positions during this transition. Notably, users may not see the conversion reflected in their Transaction History, adding a layer of complexity to the process.

Also Read: Why Cardano Price Could Jump 1500% Soon, Analysts Take On ADA

Price Regains Momentum Amid Legal Woes

While Binance’s decision to cease support for XRP may initially unsettle investors, the provision of automatic conversion to USDT mitigates potential disruptions. Meanwhile, this strategic move by Binance aims to streamline operations and align with evolving market dynamics while safeguarding users’ interests. As the cryptocurrency landscape continues to evolve, such announcements underscore the need for vigilance and adaptability among market participants.

Meanwhile, the XRP price soared 0.51% following the Binance announcement, and traded at $0.5059 during writing, while its trading volume rose 4.46% to $815.87 million. Over the last 24 hours, the XRP price has touched a low of $0.4977 and a high of $0.5117.

On the other hand, the news comes amid a time, when the Ripple vs. SEC lawsuit takes a new direction with the filing of omnibus letter motions on May 13 to seal crucial details. Ripple’s CFO, Jonathan Bilich, supports sealing documents, emphasizing their confidentiality. 

Notably, renowned lawyer James K. Filan highlights this development. Meanwhile, Bilich’s declaration underscores the importance of redacting Ripple’s financial figures, sensitive contract terms, and internal business strategies. This move aims to safeguard Ripple’s proprietary information amid the legal battle.

Meanwhile, the latest Binance announcement has sparked discussions amid the ongoing legal development around Ripple’s native crypto XRP.

Also Read: Ethereum ETF Approval Hangs In Balance As SEC Issues Major Notice

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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