Crypto exchange Binance has announced that they will be delisting FTX Exchange’s leveraged tokens. The announcement said that the exchange would delist the tokens due to users’ “lack of understanding of how leveraged tokens work.”
Binance Delists FTX Exchange ProductBinance announced that they would no longer platform FTX Exchange’s leveraged tokens. Users have until Mar. 31 to move funds off of Binance.
For tokens that are not moved before this time, Binance reported that it would credit users’ accounts “with the equivalent value held in each leveraged token at the time of delisting in BUSD.”
The assets to be delisted include BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL, and XRPBEAR reads the announcement.
The BULL and BEAR tokens represent 3x long and short levered positions on Bitcoin, respectively. For every percentage point that BTC goes up, BULL will increase by 3%. The same is true for drops.
Since the announcement, users have been mass selling their leveraged tokens on Binance.
Others have already complained, citing multi-thousand dollar losses due to the delisting. The CEO of Binance, Changpeng Zhao, has responded to each critique with what appears to be the same message, copied and pasted.
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.
— CZ Binance
All Rights Reserved. Copyright , Central Coast Communications, Inc.