Binance has decided to stop supporting trading and subscriptions for multiple leveraged tokens tied to itcoin">Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). Specifically, Binance will be halting services for the BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN tokens pairs, which are all paired against Tether (USDT), on February 28th at 6 AM UTC.
After that date, Binance will automatically remove all outstanding trade orders for these leveraged tokens, effectively setting a firm deadline for traders on the platform to close out or adjust any positions they hold. The exchange cited routine product reviews as the reason behind discontinuing these particular tokens.
Subsequently, Binance outlined a phased delisting process for the tokens leading up to April 3rd. They noted that users will still be able to redeem their holdings before the final delisting date. However, for any tokens that remain unredeemed when trading halts, Binance has committed to converting them into USDT automatically based on the value of the tokens on April 3rd. Users’ account balances will then be credited with the USDT value within 24 hours.
In their announcement, Binance pointed out some of the unique properties of leveraged tokens. Unlike margin trading, the tokens allow traders to open leveraged positions without needing to post collateral or face liquidation risk. However, Binance warned users that leveraged tokens still carry risks from factors like perpetual contract price swings, funding rates, and premiums. The decision to halt leveraged token services shows Binance continually reviewing its range of products.
