Binance today announced it will terminate support for several of its leveraged tokens linked to major cryptocurrencies including Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB) starting April 3.
This decision specifically affects leveraged tokens that are paired with Tether (USDT), such as BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.
The exchange revealed plans to halt trading and subscription services for these leveraged token pairs on February 28 at 06:00 UTC. Following this cessation, Binance will automatically cancel all pending trade orders for the affected tokens, advising users to convert their leveraged tokens into other assets before the deadline.
Binance’s schedule for the phase-out includes a gradual delisting and cessation of redemption for the tokens, starting on April 1 and culminating on April 3. Users holding these tokens are encouraged to redeem them prior to delisting.
For those who miss the deadline, Binance has offered a fallback: the exchange will automatically convert the unredeemed tokens into USDT based on their market value at the time of delisting, crediting the equivalent amount to users’ accounts within 24 hours and subsequently removing the leveraged tokens from their wallets.
Leveraged tokens are complex derivative products offering traders amplified exposure to cryptocurrencies without the need for collateral, eliminating the necessity for a maintenance margin and the risk of liquidation. However, Binance highlighted that trading these tokens carries significant risks, including potential impacts from the perpetual contracts market, such as price movements, premiums, and funding rates.
The move also comes shortly after Binance announced that it will cease listing the Monero (XMR) privacy token, along with three other tokens – Aragon (ANT), Multichain (MULTI), and Vai (VAI) – effective February 20. The crypto giant said the decision to delist these tokens stems from their failure to meet its standards.
Privacy coins like Monero are designed to preserve user anonymity by obscuring transaction details, which has made them less popular with regulators and law enforcement agencies. Their unique features make it challenging to trace the flow of money, offering enhanced privacy for financial activities.
Earlier in January, Binance tagged ANT, FIRO, KP3R, MDX, MOB, REEF, VAI, XMR, ZEC, and ZEN due to their higher volatility and risks.
