Binance reveals plans to limit its support for XRP by delisting the coin as a margin asset in multi-assets mode.
Famous crypto exchange Binance has announced plans to limit its support for XRP, the seventh-largest cryptocurrency by market cap.
Binance Delists XRP and TUSD as a Margin Asset in Multi-Assets Mode
According to a recent announcement, Binance Futures will stop supporting TUSD and XRP as margin assets in the Multi-Assets Mode. The move will become effective from May 28, 2024, at exactly 06:00 AM (UTC).
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For context, the Multi-Assets Mode is a type of futures that allows users to trade the USDⓈ-M Futures contracts using different coins as margin assets. Some supported margin assets include BTC, ETH, BNB, XRP, DOT, TUSD, and ADA. Effective May 28, Binance will stop support for XRP and TUSD.
The exchange had begun preparations to delist the assets, updating the transfer-in limit for XRP and TUSD to zero yesterday.
After the May 28 deadline, Binance will automatically convert all the remaining user balances of XRP and TUSD in USDⓈ-M Futures wallets into USDT.
The exchange’s conversion ratio for XRP will be based on the XRP/USDT average price index between 05:00 (UTC) and 06:00 (UTC) on May 28. However, Binance will convert TUSD balance on a ratio of 1:1.
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To avoid suffering potential losses via the conversion, users should convert their XRP balance themselves before the May 28 deadline. Additionally, Binance cautioned users against adding new futures positions during the conversion period to prevent potential losses.
XRP Community Member Reacts
Meanwhile, the development was also shared by prominent XRP community figure “WrathofKahneman,” who seemed curious to understand the rationale behind Binance’s latest action.
🤔 Binance Futures will discontinue support for #XRP and TUSD as a margin asset in the Multi-Assets Mode. MAM lets you use your different stablecoins (namely USDT/USDC) together as margin for your trades. Curious.https://t.co/576ViYLhfK
— WrathofKahneman (@WKahneman) May 14, 2024
The community figure stated that Binance could have easily discontinued support for other assets with lesser values instead of axing XRP and TUSD.
“Do they anticipate greater price volatility for XRP or are their coffers short to cover, or some politicking going on?” WrathofKahneman quizzed.
Notably, the user speculated that Binance could be preparing to replace XRP with the forthcoming Ripple stablecoin, adding that the exchange aims to avoid potential conflicts from listing both assets.
It remains unclear why Binance discontinued support for XRP as a margin asset in the Multi-Assets Mode. In the meantime, XRP was trading at $0.4992, marking a 1.16% decline over the past 24 hours.
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