Home Crypto News Binance Will Shut Down Leveraged Token Services

Binance Will Shut Down Leveraged Token Services

22 Feb, 2024 Crypto News

Binance Will Shut Down Leveraged Token Services

Binance, a cryptocurrency exchange, has announced plans to discontinue support for certain leveraged tokens associated with Bitcoin, Ether, and BNB by April 3.

The decision to end support for leveraged tokens paired with Tether was disclosed by Binance on February 19.

Among the affected leveraged tokens are BTCUP and BTCDOWN, ETHUP and ETHDOWN, and BNBUP and BNBDOWN.

Binance will halt trading and subscription services for the three leveraged token pairs on February 28 at 06:00 UTC.

All trade orders for the specified leveraged tokens will be automatically canceled on this date, preventing users from placing further orders. Binance advised users to trade their existing leveraged tokens for other assets before the deadline.

Subsequently, the exchange will gradually delist and discontinue redemption of the tokens between April 1 and April 3.

Users will have the opportunity to redeem their tokens before the delisting date.

In the event that users do not redeem their tokens by the deadline, Binance will convert the tokens into USDT based on their value at the time of delisting.

The converted tokens will be distributed to users' accounts within 24 hours, and the leveraged tokens will be removed from users' wallets.

Binance's leveraged tokens are derivative products that offer investors leveraged exposure to the crypto assets they represent.

These tokens consist of a basket of perpetual contract positions and are influenced by price movements in the perpetual contract market.

While leveraged tokens enable crypto traders to access leveraged positions without requiring collateral or maintaining a maintenance margin level, Binance cautioned that trading them carries inherent risks, including exposure to price movements in the perpetual contracts market, premiums, and funding rates.

Sources:

https://cointelegraph.com/news/binance-leveraged-token-services-shutdown

https://www.binance.com/en/support/announcement/updates-on-binance-leveraged-tokens-services-b982e8502e0d4a42aec8191a878f7895

https://www.binance.com/en/leveraged-tokens/tokens/allTokens

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