Binance, the behemoth in the cryptocurrency trading space, has made a strategic decision to cease offering leveraged tokens to its clientele. The exchange is aligning its services to focus on high-value products that better serve user needs. As a result, support for these tokens will conclude by April 3, 2024.
Trading Halt for Leveraged Tokens Announced
The termination of support kicks off with a trading stop on February 28, 2024. From that morning onward, all services related to leveraged tokens will pause. Binance plans to delist these tokens and discontinue redemptions, finalizing the process on April 3, 2024.
Notable leveraged tokens affected by this change include those paired with USDT, such as BNBUP/USDT, ETHUP/USDT, and the Bitcoin-related BTCUP/USDT. As the suspension takes effect, Binance will automatically cancel existing orders, and users will be barred from placing new ones. The exchange advises users to convert their leveraged tokens to other assets to avoid potential financial loss.
Conversion Process Detailed for Remaining Token Holders
For users retaining these tokens beyond the suspension date, Binance offers a sell option via their wallet function or a leveraged tokens page until the delisting. Those who do not sell their assets will see their tokens converted into USDT at the prevailing net asset value. The conversion will occur during the delisting process, with the proceeds in USDT credited to user accounts within a day.
In light of these changes, Binance encourages its users to reevaluate their leveraged token holdings and act accordingly, aiming to minimize any impact from the upcoming modifications to the service offering.