Binance To Unlist XRP Tokens

Binance, a top cryptocurrency exchange, has revealed its plan to stop trading its XRPUP and XRPDOWN leveraged tokens on July 25 at 6 am UTC. This happens as both Binance and Ripple Labs, the company behind XRP, face lawsuits from the U.S. Securities and Exchange Commission (SEC).

Binance said that these leveraged tokens, which let users bet on the price of $XRP, will be removed from the platform on the stated date. It advises users to withdraw their tokens through the wallet function before this.

Binance will convert any leftover leveraged tokens into Tether’s USDTstablecoin based on their value at the time of delisting.

Leveraged tokens allow traders to increase their exposure to specific cryptocurrencies like XRP. These tokens’ value changes with the price movements of the related cryptocurrency. For example, if a leveraged token has a 3x leverage to XRP, its value should move three times the daily change in XRP’s price.

Binance’s decision comes when both it and Ripple face lawsuits from the SEC, which claims they broke securities laws.

Recently, major holders of XRP, known as "whales," have reportedly gathered around 1.1 billion XRP, about $570 million, since February.

It was previously reported that XRP whales added over 360 million tokens to their holdings after the cryptocurrency's price dropped by about 12% in a week. Observations also show a potentially significant increase in the XRP price due to a pattern in daily active address activities.