Binance Severs Ties with XRP, Price Rises Despite Decision

Binance’s Decision to Sever Ties with XRP Leads to Market Ripples

In a surprising turn of events, Binance has announced that it will be cutting ties with XRP, a move that has sent shockwaves through the market. Despite this decision, XRP has managed to raise its price, showcasing its resilience in the face of adversity.

The decision by Binance also brings TUSD (TrueUSD) into the spotlight, as the company has stated that it will no longer accept XRP and TUSD as margin assets in its multi-asset mode. The formalities for this change are set to take place on May 28, 2024, with users losing the option to shift XRP and TUSD for futures trading purposes starting from May 14. Any remaining amounts will automatically be converted to USDT (Tether) after May 28.

Binance is advising users to be cautious during this transition period and to refrain from initiating new futures positions to avoid potential losses. It is important to note that the transformation may not be immediately visible in users’ transaction histories, so users need to be prepared for this change.

These developments come at a crucial time as the lawsuit filed by the SEC against Ripple is nearing its conclusion. Ripple has filed omnibus letter motions to close key aspects of the case, with CFO Jonathan Bilich supporting the protection of critical financial data. Lawyer James K. Filan has emphasized the importance of safeguarding Ripple’s financial data, contract terms, and internal strategies.

The intention behind Binance’s decision to sever ties with XRP and TUSD is to streamline its operations and adapt to market shifts. Despite these changes, XRP’s price has seen a 0.51% increase, trading at $0.5059 with a trade volume of $815.87 million. The price of XRP has fluctuated between $0.4977 and $0.5117 in the past twenty-four hours, showcasing the volatility of the market.