- Binance to delete all existing” FTX leveraged tokens from March 31st
- Community questions Binance’s reasoning behind the decision
- FTX exchange, in which Binance invested last year, meanwhile listing LT USDT pairs to compensate users
- In a sudden move, the world’s leading cryptocurrency exchange Binance has delisted all the FTX leveraged tokens from its platform.
On Saturday, the exchange announced that they have decided to delist “all existing” FTX leveraged tokens along with the corresponding trading pairs. These delisted pairs will stop trading from March 31st, 10:00 AM (UTC) while deposits and withdrawals will be closed the same day at 08:00 AM.
Until then, users can trade out of their existing leveraged token positions or withdraw these tokens. The user can also choose to continue holding until the delisting date after which the user’s Binance account will be credited with the equivalent value held in each leveraged token in BUSD within 14 days.
The reason for the same given by Binance is the “lack of understanding of how leveraged tokens work by many of our users.”
However, the crypto community is not satisfied with Binance’s reasoning as one user commented, “This is BS. I just had to sell at a loss because of this crap. Come on. The community can read. Educate them. Don’t delist them.”
“They are not designed for long term holding. They devalue over time when markets (underlying assets) fluctuate back and forth. The main reason for delisting is that too many users don’t understand them,” maintained Binance founder and CEO Changpeng Zhao (CZ).
While popular trader Hsaka called, “someone got rekt bigly,” another popular trader quipped, “Right, because I imagine the majority of their users totally understand how other leveraged products work!”
Interestingly, back in December, Binance invested an undisclosed amount in the derivatives platform FTX. As part of its strategic partnership, Binance also purchased long positions in the native coin of the platform FTX token, FTT.
At the time of writing, FTX token has been trading at $2.30 down 6.31% in the past 24 hours and up 4.89% YTD.
FTX founder and CEO Sam Bankman-Fried also took to Twitter to share the news that Binance is delisting leveraged tokens as they don’t “want to manage user education/support.”
Banman-Fried also said FTX is listing LT USDT pairs to compensate and users can choose to send their LTs to FTX wallet if they don’t want them turned into BUSD on Binance.
Besides delisting of FTX leveraged tokens, Binance delisted various other assets viz. BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL, and XRPBEAR.
And tons of other trading pairs will also cease to trade on the platform from March 30 that include BULL/USDT, BULL/BUSD, BEAR/USDT, BEAR/BUSD, ETHBULL/USDT, ETHBULL/BUSD, ETHBEAR/USDT, ETHBEAR/BUSD, EOSBULL/USDT, EOSBULL//BUSD, EOSBEAR/USDT, EOSBEAR/BUSD, BNBBULL/USDT, BNBBULL/BUSD, BNBBEAR/USDT, BNBBEAR/BUSD, XRPBULL/USDT, XRPBULL/BUSD, XRPBEAR/USDT, and XRPBEAR/BUSD.