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Upcoming Changes in Binance: Leveraged Tokens to Be Discontinued

Upcoming Changes in Binance: Leveraged Tokens to Be Discontinued

Key Takeaways

  • Binance announces the end of support for leveraged tokens tied to Bitcoin, Ether, and BNB by April 3.
  • Trading and subscription services for these tokens will cease on February 28, with a call to traders to convert their holdings beforehand.
  • Unredeemed tokens by the deadline will be automatically converted to USDT.

Binance, a leading crypto exchange, has announced the discontinuation of support for Binance leveraged tokens (BVLT). Trading and subscription services for all BVLTs will be suspended on February 28 at 06:00 UTC.

This decision marks a pivotal shift in the trading environment for leveraged tokens linked with Tether, such as BNB, Ether, and Bitcoin (BNBUP, BNBDOWN, ETHUP, ETHDOWN, BTCUP, BTCDOWN).

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These tokens offer traders leveraged exposure to the underlying asset, reducing liquidation-related risks. However, Binance notes that:

There are still risks associated with leveraged token positions, such as the effects of price movements in the perpetual contracts market, premiums, and funding rates.

The platform has advised traders to convert their leveraged tokens to alternative assets before the suspension. Post the trading halt, Binance will phase out and stop redemption of these tokens from April 1 to April 3, ensuring traders have a window to redeem their holdings.

For those unable to redeem by the deadline, Binance plans to automatically convert the tokens into USDT, reflecting their value at the time of delisting, and credit the amounts to user accounts within 24 hours.

This ensures a safety net for investors, albeit emphasizing the importance of adhering to the set timelines.

This move by Binance signals a cautious approach towards leveraged products, reflecting on the intricate dynamics of crypto trading. As the market evolves, traders and platforms alike navigate the fine line between innovation and risk management, shaping the future of digital asset trading.

In other Binance-related news, the exchange planned to delist Monero, among other tokens.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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