Crypto News– Binance, a prominent cryptocurrency exchange, has declared its intention to discontinue support for certain leveraged tokens tied to Bitcoin (BTC), Ether (ETH), and BNB (BNB) starting April 3rd.
Binance Takes Action: Shutting Down Multiple Leveraged Token Offerings
The decision to halt support for leveraged tokens paired with Tether (USDT) was initially disclosed on February 19th. Among the affected tokens are BTCUP and BTCDOWN, ETHUP and ETHDOWN, as well as BNBUP and BNBDOWN.
Trading and subscription services for these leveraged token pairs will be suspended on February 28th at 06:00 UTC, as per Binance’s announcement. All trade orders for these tokens will be automatically canceled on the specified date, rendering users unable to place further orders. Binance strongly advised users to convert their holdings into other assets before the deadline.
Subsequently, Binance plans to gradually delist and discontinue redemption of these tokens from April 1st to April 3rd. Users will have the opportunity to redeem their tokens before the delisting date. However, failure to do so will result in Binance converting the tokens into USDT based on their value at the time of delisting. These converted tokens will then be distributed to users’ accounts within 24 hours, with the leveraged tokens removed from their wallets.
Binance’s leveraged tokens are derivative products offering investors leveraged exposure to the associated crypto assets. They represent a collection of perpetual contract positions and are influenced by price movements in the perpetual contract market.
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