Key Takeaways
- From February 28, Binance will suspend trading and subscription services for the leveraged tokens including BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.
- If users don’t redeem their tokens in time, the exchange will convert them into USDT based on their value at delisting.
Leading cryptocurrency exchange Binance has announced a significant overhaul of its services, particularly impacting leveraged tokens associated with key cryptocurrencies like Bitcoin, Ether, and BNB. Effective April 3, Binance will discontinue its support for several leveraged tokens, including BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.
This strategic decision by Binance marks a shift in its approach, offering users a clear timeline to adjust their holdings accordingly. Beginning February 28 at 06:00 UTC, Binance will suspend trading and subscription services for these leveraged tokens. Any existing trade orders linked to these tokens will be automatically canceled, urging users to act swiftly to transition their holdings into alternative assets before the specified deadline.
Furthermore, Binance has outlined a phased approach for the delisting and cessation of redemption services for these tokens, scheduled to occur between April 1 and April 3. Users are strongly advised to redeem their tokens before the delisting date to avoid any potential conversion into USDT based on their value at the time of delisting.
In its statement, Binance assured users that funds from redeemed tokens will be credited to their accounts within 24 hours, with the corresponding leveraged tokens subsequently removed from user wallets.
Leveraged tokens are a type of cryptocurrency that allows traders to gain leveraged exposure to an underlying asset without the need for collateral. These tokens are used by traders with the aim of multiplying gains from token price movements. However, Binance has cautioned users about the risks associated with trading leveraged tokens, including the effects of price movements in the perpetual contracts market, premiums, and funding rates.
The crypto exchange expressed concerns regarding leveraged tokens stating that it allows traders to alleviate concerns about potential liquidation.
