Binance Stops Supporting Litecoin Using MimbleWimble Upgrade

Things seem to be getting worse for Litecoin (LTC) as the project’s MimbleWimble upgrade has been subject to certain restrictions by the world’s largest exchange Binance.

On June 13, Binance officially announced that it will not support Litecoin (LTC) deposits and withdrawals using MimbleWimble integration through the MimbleWimble Extension Blocks (MWEB) upgrade, allowing users to customize choose to send confidential LTC transactions without revealing any transaction information.

Accordingly, Binance asserts that any LTC deposits made to Binance through MWEB will not be received or returned as the exchange is unable to verify the sender’s address, resulting in direct loss of funds. At the same time, Binance also issued a warning to ensure the safety of its LTC funds, users should not send LTC using the MWEB function.

Basically, the MWEB upgrade is considered a historic turning point in the development of Litecoin, which was activated on May 23. MWEB will allow transactions to be anonymized on the Litecoin network. In addition, MWEB also helps Litecoin increase throughput and scalability. Especially in the context that Litecoin is ambitious to expand dApps on the LTC ecosystem through a partnership with the world’s largest Bitcoin mining pool.

However, the joy for the Litecoin community is that MWEB is becoming a real “disaster” for the existence of the project on major global exchanges. The latest decisive move from Binance comes after South Korea’s largest cryptocurrency exchanges simultaneously delisted Litecoin last week.

However, with this news combined with some pressure from the new bottoming dump of 2022 from Bitcoin and Ethereum, the LTC price reacted quite strongly. At press time, LTC is trading around $43.2, down 14.42% over the past 24 hours.

And this will cause a huge impact on future LTC trading liquidity. Even many other top exchanges that are listing LTC such as Coinbase, FTX, Gemini, etc are likely to have to consider the impact of the MWEB upgrade.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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