Martha Ezeani 
Binance Halts Several Leverage Token Services
Binance announced it would cease support for leveraged tokens connected to Bitcoin, Ether and BNB.
On April 3, cryptocurrency exchange Binance announced that it will stop supporting a few of its leveraged tokens that are connected to Bitcoin (BTC), Ether (ETH), and BNB (BNB).
On February 19, Binance declared that it would no longer handle leveraged tokens linked to Tether (USDT). The affected leveraged tokens are BTCUP and BTCDOWN, ETHUP and ETHDOWN, and BNBUP and BNBDOWN are among the affected leveraged tokens. On February 28 at 06:00 UTC, the cryptocurrency exchange will halt trading and subscription services for the three leveraged token pairs.
On the specified day, Binance claims that all trade orders for the leveraged tokens will be “automatically removed.” This implies that after that point on, users won’t be allowed to place any orders. Before the deadline, they 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 prior to the delisting date. The exchange stated that it will convert them into USDT based on their corresponding value on the delisting date if users do 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. Binance leveraged tokens are derivative instruments that provide investors with leveraged exposure to the underlying crypto assets.
Price changes in the perpetual contract market have an impact on the tokens, which are a basket of perpetual contract positions. Leveraged tokens allow cryptocurrency traders to take on leveraged bets without having to pledge any collateral.
Additionally, it frees them from worrying about liquidation and the need to maintain a maintenance margin level. Trading leveraged tokens has its advantages, but Binance cautioned that there are also risks involved as well, such as the “effects of price movements in the perpetual contracts market, premiums and funding rates.”