Binance Ends Support for Leveraged Token Trading and Subscription Services
Crypto exchange leader Binance has announced that it will no longer support leveraged trading of six tokens and subscription services. The affected tokens include BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN paired with the USDT stablecoin. The support for these tokens will be discontinued by February 28 at 06:00 (UTC). The final delisting of the affected tokens will occur on April 3, 2024. Binance has not provided any reasons for this decision, but it will continue to offer margin and regular leverage services. While self-leveraged tokens allow investors to make price forecasts and potentially earn high returns, they also come with the risk of significant losses.
Leveraged Trading Out, Margin Trading In
Binance Futures is shifting its focus to margin-based trade options. The exchange will be adding USDC-margined ORDI Perpetual Contracts to its Futures platform starting on February 22. Customers accessing this service will receive a 10% discount on trading fees until April 3, 2024. Investors using this service will have a maximum leverage ceiling of 75x, meaning they can open positions up to 75 times higher than their initial capital. The minimum accepted tick size will be set at 0.001 USDC, making it more accessible for retail investors.
ORDI Blockchain and NFTs on the Bitcoin Network
The ORDI blockchain operates on the Bitcoin network and allows for the creation of non-fungible tokens (NFTs). It enables data like video, music, audio, and images to be written on individual Satoshis (units of Bitcoin). This protocol has opened up NFT trading on Binance since its launch in early 2023. The BRC-20 token standard ecosystem, which includes ORDI, has grown to a market valuation of over $2.9 billion.
Hot Take: Binance Focuses on Margin Trading and NFTs
Binance’s decision to discontinue leveraged token trading and subscription services reflects its shift towards margin-based trade options and the growing popularity of NFTs. By offering USDC-margined ORDI Perpetual Contracts, Binance aims to provide investors with more opportunities for margin trading while ensuring accessibility for retail investors. The integration of NFTs on the Bitcoin network through the ORDI blockchain further strengthens Binance’s position as a leading crypto exchange in the market. As the crypto landscape continues to evolve, Binance remains committed to providing innovative and diverse trading options for its users.
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