Binance says it’s delisting leveraged assets tied to Bitcoin (BTC), Ethereum (ETH), XRP, EOS and Binance Coin on March 31st.
In a statement, the crypto exchange says users can still deposit and withdraw their leveraged tokens two hours before it ceases support for leveraged FTX tokens and their trading pairs.
“We will credit your Binance account with the equivalent value held in each leveraged token at the time of delisting in BUSD and within 14 days.”
Binance says it’s taking action because users are simply too confused about how leveraged tokens work.
Leveraged tokens allow crypto traders to buy positions worth more than what they can currently afford, which can be extremely risky but potentially profitable if they bet correctly. The tokens are designed to automatically reinvest profits, so they work best in trending markets.
Tokens that provide 3X leverage were first launched by crypto derivatives exchange FTX, and Binance started began offering FTX leveraged tokens on its platform after investing in the company in December of 2019.
Binance says it is delisting all trading pairs tied to the leveraged assets BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL and XRPBEAR.