Binance Futures Launches XRP/USDT Perpetual Contracts; Skeptics Cry Insider Trading

January 7, 2020 at 11:00 pm This article is more than 4 years old

News

Binance Futures, the futures trading platform of Malta-based cryptocurrency exchange Binance recently added a perpetual contract for Ripple’s XRP digital currency to its list of offerings. The exchange made the announcement on January 6, 2020.

XRP/USDT Perpetual Contracts

Changpeng Zhao-led cryptocurrency exchange Binance’s futures trading platform – Binance Futures – has added XRP/USDT perpetual contracts to its list of offered futures contracts with an option for users to trade with leverage as high as 75 times.

It’s worth highlighting that this is the first time that a renowned cryptocurrency exchange has made a move to offer XRP futures contracts to digital currency traders. Until now, only lesser-known cryptocurrency trading venues like Delta and BaseFEX offered perpetual XRP contracts.

With the addition of XRP contracts, Binance Futures now offers crypto futures contracts for four major digital currencies – Bitcoin (BTC), Ether (ETH), XRP, and Bitcoin Cash (BCH).

#Binance Futures Launches $XRP / $USDT Perpetual Contract With Up to 75x Leveragehttps://t.co/nEeG63XIvg pic.twitter.com/XjxX3DnByH

— Binance (@binance) January 6, 2020

XRP Army Involved in Insider Trading?

Ripple Inc.’s XRP digital token is currently the third-largest cryptocurrency by total market cap. However, despite being one of the most well-known and prominent digital currencies in existence, XRP has often had its legitimacy questioned by well-known personnel in the cryptocurrency industry, including the likes of Vitalik Buterin.

Shortly after the launch of XRP/USDT contracts on Binance Futures, the altcoin witnessed a huge surge in its demand which shot its price up by approximately 8 percent in the last 24 hours. This movement marked a significant reversal in the altcoin’s price movement which has largely been bearish for the majority of 2019. That said, the cryptocurrency’s price is still about 5 percent lower on a month-to-month basis.

Interestingly, a large volume of XRP started to make moves before Binance officially made the announcement of the perpetual contract. Skeptics opine that insiders and those in the know of the development likely capitalized on the market inefficiency and made thick profits by placing buy orders for the altcoin.

As reported by BTCManager on November 21, 2019, leading enterprise-grade crypto-asset risk management firm solutions provider Elliptic had stated that close to 0.2 percent of total XRP transactions were linked to illicit activities.