- Binance will delist leveraged tokens for BTC, ETH, and BNB starting Feb 28, with redemption ending April 3, as it shifts offerings for regulatory compliance.
- Leveraged tokens allow spot trading of derivatives, but carry inherent risks that likely contributed to Binance’s decision.
- Despite exiting some markets in 2022, Binance is rebuilding market share, with recent volume exceeding 60% as it prioritizes regulations.
Crypto exchange Binance announced it will stop offering leveraged tokens for Bitcoin, Ethereum, and BNB Coin starting Feb. 28.
Delisting and Redemption Details
According to a Feb. 19 statement, the exchange will delist the affected tokens and halt redemption by April 3. The leveraged tokens being discontinued are BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.
Users are urged to trade their tokens before the Feb. 28 deadline. Afterwards, tokens can still be redeemed via the wallet or website. These assets will automatically convert to USDT after the delisting period.
How Binance Leveraged Tokens Work
Binance Leveraged Tokens are derivative products representing a basket of perpetual contract positions that provide leveraged exposure to the underlying asset. Like other tokens, these assets can be traded via the spot market.
Thus, they allow exchange users to participate in derivatives trading without changing their strategies. However, these assets also carry inherent risks.
Reasons for Discontinuing Service
Though Binance didn’t specify why it is discontinuing these services, it stated that it aims to deliver optimal value to customers and maintain competitiveness.
Binance Market Share Rebounds
Additionally, Binance’s market share is quietly rebounding to previous highs following regulatory challenges last year.
The platform exited or partially exited several regions, including Canada, the UK, and European countries like Austria, Cyprus, and the Netherlands. It also settled with US authorities for $4.3 billion, causing its market share to drop to 44.5% in 2022.
However, recent data shows its market share volume exceeding 60% as of Feb. 18. Earlier this month, CryptoSlate Insight reported Binance surpassed CME as the top Bitcoin futures exchange.
Conclusion
The discontinuation of leveraged tokens marks the latest shift in Binance’s offerings as it aims to comply with regulations. Despite exits from certain markets, the exchange is rebuilding market share. Regulatory compliance remains a priority as Binance seeks to maintain its dominance.
