TL;DR
- Binance will stop supporting specific leveraged token pairs, converting those held by users to USDT.
- The move is part of the company's ongoing effort to refine its product offering.
The largest cryptocurrency exchange in the world – Binance – Announced will stop supporting the following leveraged token pairs: BNBUP/USDT, BNBDOWN/USDT, ETHUP/USDT, ETHDOWN/USDT, BTCUP/USDT, and BTCDOWN/USDT before April 3.
Trading and subscription options for affected tokens will end on February 28. The company did not provide a reason behind its measure, recalling that it conducts periodic reviews of its product offerings and leaves only those that provide users with “the most valuable and competitive services.” .”
“If users still hold the aforementioned tokens after the respective delisting time, Binance will convert these tokens to USDT based on the corresponding net asset value (NAV) at the time of delisting and distribute the USDT tokens to users' accounts within of 24 hours. delisting,” the exchange clarified.
Binance leveraged token pairs are primarily designed for short-term trading. They represent a basket of perpetual contractual positions and allow users to gain leveraged exposure to particular digital assets without meeting margin requirements.
These tokens, in general, were also very controversial in the days after their introduction in 2020. There were many traders who did not understand their exact structure and subsequently lost money because of it. There were even social media groups circulating online of people who wanted to sue Binance for this.
This is not the first IPO launched by the company since the beginning of the year. Earlier this month, revealed that Monero (XMR), Aragon (ANT), Multichain (MULTI) and Vai (VAI) will no longer be available to users starting February 20.
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