Binance has announced it will no longer support leveraged tokens on its platform by the end of February as part of its existing product review process.
According to an official statement, starting February 28, 2024, the exchange will discontinue trading and subscription services for all Binance Leveraged Tokens (BLT). It noted that it would commence the delisting process and stop token redemptions via different schedules for each BLT pair from April 1, 2024, to April 3, 2024.
The affected leveraged token pairs include
- BNBDOWN/USDT,
- BNBUP/USDT,
- ETHDOWN/USDT,
- ETHUP/USDT,
- BTCDOWN/USDT, and
- BTCUP/USDT.
Users may still be able to trade and redeem these leveraged tokens before their respective delisting schedules.
After the delisting, any leveraged tokens customers did not redeem will be converted to an equivalent value in USDT based on their net asset value. The affected users will receive their USDT equivalent within 24 hours of completing the delisting process, according to the exchange’s press release.
Leveraged tokens, a form of digital currency derivative, provide crypto traders with leveraged exposure to specific cryptocurrencies without the need to manage margin requirements. These tokens represent perpetual contract positions, and they offer traders the opportunity to leverage their positions while mitigating the risks associated with liquidation. However, they are prone to rebalancing and can be extremely volatile, thus requiring a clear strategy and understanding of their usefulness.
In a similar development, the exchange announced that it would delist four cryptocurrencies, Multichain (MULTI), Monero (XMR), Aragon (ANT), and VAI (VAI), by February 20, 2024. However, its reason for delisting the four cryptocurrencies—its periodic product review exercise—fell flat with members of the crypto community on X. Some criticized the exchange for being vague, while others suggested that the exchange is yielding to regulatory pressure.
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