Binance has announced the closure of several leveraged token services. This decision impacts tokens associated with cryptocurrencies such as Bitcoin, Ether, and BNB. Binance has set a clear timeline for users to convert or redeem these tokens, emphasizing the importance of acting before the April 3 deadline.
Starting February 28, at precisely 06:00 UTC, Binance will halt trading and subscription services for leveraged tokens, including BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.
Consequently, the platform will automatically cancel all related trade orders. Binance advises its users to swiftly transition their holdings into alternative assets to avoid potential complications.
Moreover, the exchange plans a phased delisting and redemption cessation of these tokens from April 1 to April 3. For those who miss this window, Binance will convert any remaining tokens into USDT based on their value at the time of delisting. The exchange promises to credit these funds to user accounts within 24 hours, subsequently removing the leveraged tokens from wallets.
Binance’s leveraged tokens have offered traders a way to gain amplified exposure to crypto assets without the usual requisites of collateral or maintenance margins. However, despite their advantages, Binance cautions about the inherent risks. These include the volatile nature of the perpetual contracts market, along with potential premiums and funding rates.
This move underscores Binance’s commitment to user safety and market stability, reminding traders of the careful navigation required in the complex world of cryptocurrency trading.
Also, traders should note that this move is only for leveraged future trading, and Futures trading will continue to be operational as usual.
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