Binance to shut down many used token services
Crypto exchange Binance said on April 3 that it will end support for some used tokens related to Bitcoin (BTC), Ether (ETH) and BNB (BNB).
Binance announced on February 19 that it has decided to end support for backed tokens tied to Tether (USDT). Affected tokens include BTCUP and BTCDOWN, ETHUP and ETHDOWN, and BNBUP and BNBDOWN.
The crypto exchange will stop trading and subscription services for three used token pairs on February 28 at 06:00 UTC. According to Binance, all trade orders for the listed supported tokens will be “automatically removed” on the scheduled date. This means that users will not be able to place any orders from then on. Binance urged its users to convert their backed tokens into other assets before the deadline.
Following this, the exchange said it will gradually stop redeeming tokens from April 1st until April 3rd. Binance said users can redeem their tokens before the cancellation date.
However, if the users fail to redeem their tokens within the deadline, it will convert the tokens into USDT at their equivalent value on the day of cancellation, he said. Binance will distribute the tokens to the users account within 24 hours and remove the used tokens from the user's wallet.
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Binance's leveraged tokens are derivatives that give investors exposure to linked crypto assets. The tokens represent a basket of perpetual contract positions and are influenced by price movements in the perpetual contract market.
According to Binance, backed tokens allow crypto traders to gain exposure to authorized positions without putting up any collateral. It also allows them to not have to maintain maintenance margin levels and worry about liquidity. Despite the benefits, Binance warns that trading used tokens also comes with its own risks, including “the effects of price movements in the perpetual contract market, premiums and funding rates.”
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