Connect with us

Hi, what are you looking for?

Criptomonedas

Binance to close down several leveraged token listings

Binance, one of the leading cryptocurrency exchanges, recently made a significant announcement regarding the discontinuation of support for certain leveraged tokens associated with popular cryptocurrencies such as Bitcoin, Ether, and BNB. This decision, unveiled on Feb. 19, specifically targets leveraged tokens BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN, all paired with Tether.

According to Binance, trading and subscription services for these leveraged token pairs will cease on Feb. 28 at 06:00 UTC. This move aims to streamline and refine the exchange’s offerings, focusing on products that align better with their long-term vision and user needs. All trade orders for the mentioned leveraged tokens will be automatically removed on the set date, allowing users a clear deadline to adjust their holdings accordingly.

In preparation for the delisting process, Binance has outlined a phased approach that will commence on Apr. 1 and conclude by Apr. 3. During this period, users will have the opportunity to redeem their tokens before the official delisting date. However, for those unable to meet the redemption deadline, Binance has pledged to convert the tokens into USDT based on their value on the delisting date and credit users’ accounts within 24 hours. This proactive step aims to ensure a smooth transition for all users impacted by the delisting.

Leveraged tokens have been a popular tool for traders looking to engage in leveraged positions without the need for collateral or maintenance margins, effectively reducing liquidation risks. Despite their advantages, Binance has highlighted potential risks associated with leveraged tokens, including the impact of price movements in the perpetual contracts market, premiums, and funding rates. By discontinuing support for certain leveraged tokens, Binance aims to refine its product offerings and align them more closely with user needs and market trends.

This decision by Binance reflects the evolving nature of the cryptocurrency market and the importance of staying agile in response to changing dynamics. As the industry continues to mature, exchanges like Binance will need to adapt and optimize their product offerings to meet the evolving needs of their user base. Stay tuned for further updates and developments from Binance as they continue to navigate the dynamic cryptocurrency landscape.

Written By

Click to comment

Leave a Reply

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

También te puede interesar

Criptomonedas

Tabla de Contenidos Which are the best cryptocurrencies for mining with ASICs in 2024, and how much can miners expect to earn? The global...

Criptomonedas

Tron founder Justin Sun made headlines today by revealing his massive holdings in the cryptocurrency market, showcasing his personal HTX account with assets worth...

Criptomonedas

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), recently responded to inquiries from legislators regarding a security incident involving the...

Criptomonedas

Cybercriminals stole more than $104 million worth of cryptocurrency in February, reflecting a 42% decrease from the previous month. According to data compiled by...