Key Points
Binance Ends Support for Certain Leveraged Tokens
Binance has decided to stop supporting certain leveraged tokens.
The tokens in question are associated with Bitcoin, Ether, and BNB.
This change will be effective from Apr. 3.
The decision was announced on Feb. 19.
It specifically affects leveraged tokens BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.
All these tokens are paired with Tether.
Binance will cease trading and subscription services for these leveraged token pairs on Feb. 28 at 06:00 UTC.
The exchange stated that all trade orders for these tokens will be ‘automatically removed’ on this date.
This sets a firm deadline for users to adjust their holdings.
Phased Process for Delisting
Binance has detailed a phased process for the delisting.
This process will start on Apr. 1 and end by Apr. 3.
The company said, “Users will be able to redeem their tokens before the delisting date.”
However, if users fail to meet the redemption deadline, Binance will convert the tokens into USDT.
This will be based on their value on the delisting date.
Binance will credit users’ accounts within 24 hours of the conversion.
According to Binance, leveraged tokens are a way to participate in leveraged positions without collateral or maintenance margins.
This allows users to avoid liquidation risks.
However, Binance has warned of potential risks despite the benefits of leveraged tokens.
These risks include “the effects of price movements in the perpetual contracts market, premiums, and funding rates.”
