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Binance considered credit tokens ...

Binance found credit tokens too complicated and decided to get rid of them
CONTENT

  • Binance Announces Leveraged Token Delisting.

  • The head of the exchange considers these tools too difficult to understand

  • Traders massively sell tokens and incur losses

International consortium of news organizations developing transparency standards.

Cryptocurrency exchange Binance has announced the delisting of all FTX credit tokens and all trading pairs with them. Clients need to have time to withdraw money before March 31, 2020.

One of the world’s largest cryptocurrency asset trading platforms announced that it no longer supports FTX credit tokens. BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL, XRPBEAR, as well as all trading pairs with these coins are subject to delisting. The official statement says that trading will be stopped on March 31 at 13:00 Moscow time, replenishment and withdrawal of funds will be disabled even earlier, at 11:00 Moscow time..

#Binance Will Delist All FTX Leveraged Tokens

Binance considered credit tokens ...

From now until the delisting time you can:

– Trade out existing positions.
– Withdraw
– Continue holding and be credited the equivalent value of your holdings in BUSD at the time of delisting.
https://t.co/LQCbbr0x6J

– Binance (@binance) March 28, 2020

If users do not have time to withdraw their money before the specified deadline, Binance will credit their accounts with an amount in BUSD equivalent to the value of their tokens at the rate at the time of delisting..

What are credit tokens

The credit tokens issued by the FTX platform allow investors to hold an asset with integrated leverage. The idea seems difficult, but these tokens generate higher returns in a trendy market than spot or other derivatives.

In particular, BULL and BEAR tokens represent respectively long and short positions in bitcoin with 3x leverage. This means that if Bitcoin goes up 1%, BULL goes up 3%. BEAR works the same way only in a bear market.

These instruments are issued by the FTX cryptocurrency exchange and are popular with traders. However, Binance’s announcement has already sparked a massive sell-off..

Obsessive customer care

Binance considered credit tokens ...

The head of Binance explained this decision by the exchange’s desire to save customers from significant losses in the current market. In response to comments from disgruntled users, Changpeng Zhao stated that leveraged tokens are too complex to understand. According to him, these tokens are not intended for long-term investments and are depreciated in volatile markets. In addition, most traders do not understand how they function and, accordingly, expose themselves to the risk of losses..

https://twitter.com/cz_binance/status/1243906640060932096?s=20

Interestingly, Zhao duplicated this answer to anyone who complained and complained about losses associated with the delisting of leveraged tokens. Note that earlier the head of Binance offered to buy bitcoin with borrowed funds.

Meanwhile, the director of the FTX Exchange cryptocurrency derivatives exchange, Sam Bankman-Fraid, said that Binance could not or did not want to educate traders and help them understand the product. Instead, the platform just decided to get rid of them. In a recent tweet, he announced that holders of leveraged tokens can transfer them to an FTX wallet to avoid a forced conversion to BUSD..

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