According to the latest announcement, Binance will delist several leveraged tokens paired with Bitcoin (BTC), Ethereum (ETH), and BNB starting from April 3, 2024.
The affected trading pairs include BTCUP/USDT, BTCDOWN/USDT, ETHUP/USDT, ETHDOWN/USDT, BNBUP/USDT, and BNBDOWN/USDT. Binance will also suspend trading services for these leveraged tokens at 06:00 AM on February 28th (UTC).
Here is the schedule for the delisting of leveraged token pairs.
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Binance will automatically cancel all transactions related to these tokens at the specified deadline. The exchange will gradually delist and stop buying back tokens from April 1st to April 3rd. Users can swap tokens before the delisting date.
In case users do not actively swap their tokens, the exchange will convert the balance into USDT based on the token price on the delisting date. Binance will distribute the tokens to users’ accounts within 24 hours and remove the leveraged tokens from wallets.
Binance’s leveraged tokens are derivative products that allow investors to have leveraged exposure to the associated cryptocurrencies. These tokens represent a basket of perpetual contract positions and are affected by price fluctuations in the perpetual contract market.
Related: Binance Announces Listing of Starknet (STRK)
Leveraged tokens are a type of derivative product that enables users to access leveraged positions without collateralizing assets or relieving liquidation risks.
Despite the numerous benefits, Binance still warns that leveraged token trading often comes with other risks such as market volatility, price discrepancies, and various fees.
