Binance to shut down multiple leveraged token listings
Binance has announced the discontinuation of support for certain leveraged tokens associated with Bitcoin, Ether, and BNB, effective Apr. 3.
Unveiled on Feb. 19, the decision specifically targets leveraged tokens BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN, all paired with Tether.
The exchange will halt trading and subscription services for these leveraged token pairs on Feb. 28 at 06:00 UTC, as stated by Binance.
All trade orders for the leveraged tokens that they mentioned will be ‘automatically removed’ on the set date, indicating a firm deadline for users to adjust their holdings.
In preparation for the delisting, Binance has outlined a phased process commencing on Apr. 1 and concluding by Apr. 3.
“Users will be able to redeem their tokens before the delisting date,” said the company.
However, for those who do not meet the redemption deadline, Binance has committed to converting the tokens into USDT based on their value on the delisting date and crediting users’ accounts within 24 hours.
As described by Binance, leveraged tokens offer a means to engage in leveraged positions without collateral or maintenance margins, thereby avoiding liquidation risks.
“The effects of price movements in the perpetual contracts market, premiums, and funding rates” are among the potential risks Binance has warned about despite the advantages of leveraged tokens.
