All FTX Leveraged Tokens on Binance to Be Removed in a Bid to Secure Clients

All FTX Leveraged Tokens on Binance to Be Removed in a Bid to Secure Clients

The decision to remove the leveraged tokens from FTX Exchange came as a surprise to most in the cryptocurrency ecosystem. The cancellation, which is scheduled to be near completion on March 31, implies that all the leveraged tokens must be removed or turned to the Stablecoin BUSD of Binance according to their USD current value.

A few of the assets to be removed totally from Binance include BULL, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL and XRPBEAR, as reported. Every BULL and BEAR token for their specific crypto-currency reflects a leveraged role. For instance, if Ethereum increases by 1%, ETHBULL may rise by 3%. The very same holds to ETHBEAR, in the opposite.

Binance declared it would delete all of the leveraged tokens from its website. Customers have to get their funds off Binance by March 31. In a surprising twist, Binance liquidates all the leveraged tokens from FTX Exchange.

Recently the statement was released via official Binance outlets.

FTX Exchange Review

The leveraged tokens are just too risky for clients, as per Binance’s CEO Changpeng Zhao (CZ). As said by him, they appear to “lose value with time,” and are not intended for long-term investments. CZ says people never read the warnings since it is too risky although they are among the most widely traded tokens.

The Scenario Fuels Displeasure
Most leveraged token investors suffered huge consequences as a result of the mega-crash that occurred two weeks ago.

Nevertheless, Binance appears to have no problem with its margin trading website, which is similarly unpredictable and offers 100x leverage for clients. The fact of the matter, it seems, is also that Binance was unable to make a profit out of FTX tokens, so they’ve been taken down.

Many have continued to tweet #thiefCZ as a result of the frustration stirring over on Twitter. Listing and removing many tokens, they say, in such a short space of time is equivalent to scam.

Nevertheless, the argument for CZ was not welcomed by almost everyone. Binance removed the tokens whilst being disinterested in educating the public regarding them, according to FX Exchange’s CEO.

Most say that Binance perceived FTX Exchange as a rival and decided that the partnership should be broken.

Because of late, given the uproar, it appears that leveraged tokens may never be re-added to Binance. FTX Exchange may need to deal with Binance explicitly now, instead.

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.