Relist XRP: Japan’s Rakuten to Restart XRP margin trading services
XRP price remains bullish with a bearish attitude from exchanges. While most crypto exchange platforms have discontinued XRP trading; the Japanese Rakuten’s crypto arm, the wallet and Exchange service has announced to relist the infamous crypto. Target service XRP margin trading will restart post-September 8, 2021, according to the exchange.
The firm had discontinued its XRP margin trading services last year, on December 24, in light of the controversial XRP lawsuit. However, Rakuten is now certain of securing some amount in price liquidity on XRP margin trading. Additionally, the exchange platform also confirmed the potential delivery of price stability to its XRP investors.
Rakuten shares XRP leverage derivates trading Drawbacks
Rakuten Exchange has emphasized the significance of Exit liquidity and price stability in leveraged derivatives trading. The risk of losses becomes inevitably huge with the deadly combination of volatile prices and low liquidity. However, Rakuten Exchange has guaranteed to discontinue the XRP margin trading services again, if the crypto does not perform as expected. Despite relisting XRP, the Japanese Exchange has not displayed sufficient faith in the crypto, considering its compromising position due to the ongoing XRP lawsuit.
“If the Company reasonably determines that the above loss may occur (Since the leverage ratio of our margin trading is double, considering spreads, for example, if you have a buy (long) position (open interest) that is twice the deposit margin, it is 50 from the average price of open interest. % Or more, if it is reasonably judged that the market price may fall), after notifying the customer in advance, the customer’s open position will be counter-traded at the market price and the position will be opened. It may be resolved. This may cause loss to the customer.”, stated Rakuten Exchange.
Currently, Ripple is standing at the weaker end, in the XRP lawsuit as the court granted the plaintiff’s Motion to Compel Discovery of Ripple’s Slack communications. Furthermore, Attorney Tessler’s offer to practice Pro Hac Vice as counsel for amicus curiae, on behalf of the Chamber of Digital Commerce was also denied by the court.Source