Binance announces closure of several leveraged token listings
Binance has made an announcement stating that it will no longer support certain leveraged tokens associated with Bitcoin, Ether, and BNB starting from April 3. The decision, which was unveiled on February 19, specifically targets leveraged tokens BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN, all of which are paired with Tether.
In accordance with Binance’s statement, trading and subscription services for these leveraged token pairs will be halted on February 28 at 06:00 UTC. All trade orders for these tokens will be automatically removed on the specified date, giving users a clear deadline to adjust their holdings.
To facilitate the delisting process, Binance has outlined a phased approach that will take place between April 1 and April 3. The company has assured users that they will be able to redeem their tokens before the delisting date. However, for those who fail to meet the redemption deadline, Binance will convert the tokens into USDT based on their value on the delisting date and credit users’ accounts within 24 hours.
Leveraged tokens, as described by Binance, provide an opportunity to engage in leveraged positions without the need for collateral or maintenance margins, thus minimizing the risk of liquidation. Despite the benefits of leveraged tokens, Binance has cautioned users about potential risks such as price fluctuations in the perpetual contracts market, premiums, and funding rates.
In other news, Binance has integrated 24 new decentralized applications (dapps) into its web3 wallet. Stay updated by following us on Google News.
