Multiple Exploited Token Services Will Be Shut Down By Binance

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On April 3, cryptocurrency exchange Binance announced that it would stop supporting certain of its leveraged tokens that are connected to the declines in Bitcoin BTC tickers down $52,499, Ether ETH tickers down $2,985, and Bitcoin NEM tickers down $358.

On February 19, Binance declared that it would no longer handle leveraged tokens linked with Tether USDT tickers below $1.00. BTCUP and BTCDOWN, ETHUP and ETHDOWN, and BNBUP and BNBDOWN are among the impacted leveraged tokens. 

Binance To Automatically Remove Trade Orders For Leveraged Tokens

On February 28 at 06:00 UTC, the cryptocurrency exchange will halt trading and subscription services for the three leveraged token pairings. On the specified day, Binance claims that all trade orders for the leveraged tokens would be “automatically removed.” This implies that at that point on, users won’t be allowed to place any orders. Before the deadline, it encouraged its customers to exchange the leveraged tokens they were holding for other assets. After that, the exchange said that beginning on April 1 and lasting until April 3, it will progressively delist and stop redeeming the tokens. Users will be able to redeem their tokens before the delisting date, according to Binance. The exchange stated that it would convert the tokens into USDT based on their equivalent value on the delisting date if users did not redeem their tokens by the deadline. Within a day, Binance will transfer the tokens to the users’ accounts and take the leveraged tokens out of their wallets.

Leveraged tokens from them are derivative instruments that offer investors leveraged exposure to the underlying crypto assets. The price changes in the perpetual contract market have an impact on the tokens, which are a basket of perpetual contract holdings. Leveraged tokens, according to Binance, let cryptocurrency traders take on leveraged bets without having to pledge any collateral. Additionally, it frees them from worrying about liquidation and they have to maintain a maintenance margin level.