Important Binance Announcement Affecting Controversial Ethereum Pairs
TL;DR
- Binance will discontinue support for specific leveraged token pairs, converting any held by users into USDT.
- The move is part of the company’s ongoing effort to refine its product offerings.
The world’s largest cryptocurrency exchange – Binance – announced it will cease support for the following leveraged token pairs: BNBUP/USDT, BNBDOWN/USDT, ETHUP/USDT, ETHDOWN/USDT, BTCUP/USDT, and BTCDOWN/USDT by April 3.
Trading and subscription options for the affected tokens will be terminated on February 28. The company did not provide a reason behind its move, reminding that it conducts regular reviews of its product offerings and leaves only those providing users with “the most value and competitive services.”
“If users are still holding the aforementioned tokens after the respective delisting time, Binance will convert these tokens to USDT based on the corresponding net asset value (NAV) at the time of delisting and will distribute the USDT tokens to users’ accounts within 24 hours of delisting,” the exchange clarified.
Binance leveraged token pairs are primarily designed for short-term trading. They represent a basket of perpetual contract positions and allow users to gain leveraged exposure to particular digital assets without complying with margin requirements.
These tokens, in general, were also very controversial back in the days following their introduction in 2020. There were many traders who failed to understand their exact structure and subsequently lost money because of it. There were even social media groups circulating online of people who wanted to sue Binance because of it.
This is not the first delisting spree launched by the company since the beginning of the year. Earlier this month, it disclosed that Monero (XMR), Aragon (ANT), Multichain (MULTI), and Vai (VAI) will no longer be available to users starting February 20.
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