In a move that has caught the attention of cryptocurrency enthusiasts, Binance, a global giant in the world of digital exchanges, has announced its decision to delist trading pairs ADAUP/USDT and ADADOWN/USDT. The once-popular leveraged tokens, which initially entered the Binance platform in July 2020, are set to bid farewell to the exchange on Aug. 16.
The tokens in focus, ADADOWN and ADAUP, have had a combined issuance totaling 1,039,474,882.17 and 14,877,828.92, respectively. These tokens have been characterized by a daily trading volume of $1.083 million for ADADOWN and $498,300 for ADAUP.
These leveraged tokens have provided traders on Binance with a unique opportunity to gain amplified exposure to the Cardano token. Operating as perpetual contract positions, their value has been intricately linked to fluctuations in the notional value of the underlying perpetual contracts within the group. This mechanism, coupled with the ability to adjust leverage, has enabled traders to potentially augment their profits or losses while avoiding the threat of liquidation.
Why?
Curiously, Binance has yet to disclose the exact reasons behind the removal of ADAUP and ADADOWN. Speculation in the industry points toward regulatory concerns, which have recently plagued Cardano due to ongoing litigation initiated by the SEC.
Earlier, a similar decision affected XRP tokens. On July 25, trading of XRPUP and XRPDOWN stopped. At the same time, similar products for such digital assets as BNB, Filecoin (FIL) and Ethereum (ETH), whose regulatory statuses are also unclear, remain available on Binance.
Tomiwabold Olajide
Godfrey Benjamin
