Binance to Cease Support for Certain Leveraged Tokens Starting April 3
Summary:
Binance, a leading cryptocurrency exchange, has announced it will terminate support for certain leveraged tokens tied to Bitcoin, Ether, and BNB from April 3. The affected tokens will have trading and subscription services suspended on Feb. 28, and the exchange will gradually delist and cease redemption of these tokens between April 1 and April 3. Users are urged to transform leveraged tokens into other assets before the deadline or they will be converted into the tethered currency USDT following the delisting.
Binance, a prominent cryptocurrency exchange, has announced the cessation of support for select leveraged tokens connected to Bitcoin (BTC), Ether (ETH), and BNB (BNB) effective from April 3. The pronouncement to terminate support for such leveraged tokens associated with Tether (USDT) was initially made on Feb. 19. The affected leveraged tokens comprise BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN. The trading and subscription facilities of the three token pairs will be put on hold on Feb. 28 at 06:00 UTC as per Binance. All trading instructions related to the mentioned leveraged tokens will be “automatically cancelled” as per the prearranged schedule, implying users won't be able to place orders henceforth. Binance has advised its users to convert the owned leveraged tokens into other assets before the stipulated time frame. Thereafter, the exchange intends to gradually eliminate and stop the redemption process of the tokens, starting on April 1 until April 3. Users have the green light to redeem their tokens ahead of the delisting date. However, should they miss the cut-off time, these tokens will be converted into USDT based on their respective value on the day of delisting. The tokens will be allocated to users' accounts within a day, post which the leveraged tokens will be removed from their wallets. Leveraged tokens of Binance, which are derivative items, offer investors magnified exposure to the cryptocurrency assets they are linked with. The tokens symbolize a collection of perpetual contract positions and are affected by price fluctuations in the perpetual contract market. Leveraged tokens, per Binance, empower crypto traders to be exposed to leveraged positions without the need for collateral, maintenance of margin level and the fear of liquidation. Despite the advantages, Binance highlighted the potential risks, including "price movement effects in the perpetual contracts market, premiums, and funding rates.
Published At
2/19/2024 4:49:24 PM
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