Binance, one of the world’s leading cryptocurrency exchanges, has revealed plans to cease support for several leveraged tokens linked to Bitcoin, Ethereum, and BNB, effective April 3rd.
The decision, disclosed on February 19th, specifically targets leveraged tokens including BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN, all of which are paired with Tether (USDT).
According to Binance, trading and subscription services for these leveraged token pairs will be halted on February 28th at 06:00 UTC. All existing trade orders for these tokens will be automatically canceled on this date, providing users with a firm deadline to adjust their holdings.
To facilitate the delisting process, Binance has outlined a phased approach beginning on April 1st and concluding by April 3rd. The company has assured users that they will have the opportunity to redeem their tokens before the delisting date.
However, for users unable to meet the redemption deadline, Binance has committed to converting the tokens into USDT based on their value at the time of delisting. The converted USDT will then be credited to users’ accounts within 24 hours.
Leveraged tokens, as described by Binance, offer a way to engage in leveraged positions without the need for collateral or maintenance margins, thus mitigating liquidation risks. Despite their advantages, Binance warns users about potential risks associated with leveraged tokens, including the impact of price movements in the perpetual contracts market, premiums, and funding rates.
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