Binance to Suspend and Convert Leveraged Tokens BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN
Binance, the largest cryptocurrency exchange platform in the world, announced that it will end support for some of its leveraged tokens related to BTC, ETH, and BNB on April 3. This decision affects leveraged token pairs paired with USDT, including BTCUP and BTCDOWN, ETHUP and ETHDOWN, as well as BNBUP and BNBDOWN.
As Binance regularly reviews its product offerings to focus on products that can provide users with the greatest value and competitive services, Binance will cease to support Binance Leveraged Tokens.
Binance
Timeline for Suspension and Conversion
Binance will suspend trading and subscription services for these three leveraged token pairs on February 28 at 06:00 UTC. All trading orders for these tokens will be automatically canceled by this date. Binance has encouraged users to convert the leveraged tokens they hold into other assets before the deadline.
Starting from April 1, Binance will gradually stop the redemption of tokens until April 3. Users will be able to claim their tokens before the delisting date.
Mechanism for Conversion in Case of Non-Claim
If users do not claim their tokens before the deadline, Binance will convert them into USDT based on their corresponding value at the delisting date. Funds will be distributed to users’ accounts within 24 hours of delisting, and leveraged tokens will be removed from users’ wallets.
Binance’s leveraged tokens are derivative products that provide investors with leveraged exposure to the crypto assets they are linked to. They represent a basket of perpetual contract positions and are influenced by price movements in the perpetual contract market. While these tokens allow crypto traders to be exposed to leveraged positions without requiring collateral or maintaining a maintenance margin level, Binance emphasizes that trading these tokens carries its own risks, including the effects of price movements in the perpetual contract market, premiums, and funding rates.
