Binance is urging its users to convert or redeem their tokens into other assets before the deadline.
The cryptocurrency exchange Binance has announced it will cease support for some of its leveraged tokens linked to Bitcoin, Ether, and BNB on April 3rd. Binance disclosed its decision to end support for leveraged tokens paired with Tether (USDT) on February 19th. The affected leveraged tokens include BTCUP and BTCDOWN, ETHUP and ETHDOWN, BNBUP, and BNBDOWN.
Crypto exchange services for trading and subscription of three leveraged token pairs will halt on February 28th at 06:00 UTC. Binance stated that all trading orders for the mentioned leveraged tokens will be automatically cancelled on the specified date, meaning users will no longer be able to place orders from that time. Binance has requested its users to trade their leveraged tokens for other assets before the designated deadline. Following this, the exchange announced it would gradually delist and begin redeeming tokens from April 1st, continuing until April 3rd. Binance mentioned that users could redeem their tokens before the delisting date. However, if users fail to redeem their tokens by the deadline, the exchange stated it would convert the tokens to USDT based on their corresponding value on the delisting date, distributing the tokens within 24 hours in users’ accounts and removing the leveraged tokens from users’ wallets.
Binance’s leveraged tokens are derivative products that expose investors to the leverage of cryptocurrency assets related to them. These tokens represent a basket of perpetual contract positions and are influenced by price movement in the perpetual contract market. According to Binance, leveraged tokens allow cryptocurrency traders to take on leveraged positions without posting collateral, also enabling them to avoid maintaining a margin level and worrying about liquidation. Despite the benefits, Binance warned that trading in leveraged tokens also carries its specific risks, including the effects of price movement in the perpetual contract market, premiums, and funding rates.
