Binance Ends Support for Leveraged Tokens: What You Need to Know
Binance, in a blog post shared on Feb. 19, announced that it will no longer support Binance Leveraged Tokens (BLT) as part of its product review and focus on delivering value to users.
Binance Ends Leveraged Token Support in April
Binance revealed that it will cease trading and subscription services for all leveraged tokens by February 28, 2024. The affected tokens include BTCUP and BTCDOWN, ETHUP and ETHDOWN, and BNBUP and BNBDOWN.
- Binance will automatically remove all trade orders for leveraged tokens on the specified date.
- Users are encouraged to trade their leveraged tokens for other assets before the announced date.
The exchange plans to delist and stop redemption of the tokens from April 1 to April 3. Unredeemed tokens will be converted to USDT based on their value on the delisting date.
What are Leveraged Tokens?
Leveraged tokens offered by Binance represent a basket of perpetual contract positions and are suitable for short-term trading. They are not intended as a substitute for margin-leveraged products.
- Leveraged tokens provide exposure to leveraged positions without collateral requirements or liquidation risk.
- However, they come with associated risks, including price movements in the perpetual contracts market, premiums, and funding rates.
Hot Take: Binance’s Decision to Cease Support for Leveraged Tokens
Binance’s move to discontinue support for leveraged tokens aligns with its commitment to improving services and focusing on user preferences and market developments. It highlights the importance for crypto platforms to regularly evaluate their offerings for compliance and competitive advantage.
As a user affected by this decision, it is essential to adjust your trading strategies accordingly and stay informed about alternative options available on Binance.
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