Binance intends to discontinue several leveraged token services associated with Bitcoin, Ether, and BNB by April 3. The decision, initially announced on February 19, targets leveraged tokens tied to Tether. Among the affected tokens are BTCUP and BTCDOWN, ETHUP and ETHDOWN, and BNBUP and BNBDOWN.
Starting February 28 at 06:00 UTC, Binance will halt trading and subscription services for these tokens, with all related orders automatically cancelled. Users are advised to trade their leveraged tokens into other assets before this deadline.
From April 1 to April 3, Binance will progressively delist and stop redeeming the tokens. Users have the option to redeem their tokens before the delisting date. Unredeemed tokens by the deadline will be converted into USDT at their value on the delisting date, and distributed to users within 24 hours, after which the tokens will be removed from users’ wallets.
Binance’s leveraged tokens offer investors leveraged exposure to crypto assets through a basket of perpetual contract positions, reflecting price movements in the perpetual contract market. While they enable leveraged positions without collateral requirements or concerns about maintenance margin levels and liquidation, Binance highlights the inherent risks, including price movements in the perpetual contracts market, premiums, and funding rates.