Binance, a prominent global cryptocurrency exchange, has made a significant decision regarding its offerings by announcing the delisting and cessation of redemption for XRPUP and XRPDOWN leveraged tokens. These particular tokens were initially introduced on the Binance platform back in 2020. However, Binance has now scheduled their removal from the exchange, effective July 25.
Godfrey BenjaminIn the event that users still possess these leveraged tokens after the delisting deadline, the exchange has outlined its plan to convert them to USDT, a stablecoin pegged to the U.S. dollar. The conversion process will be based on the net asset value of the tokens at the time of delisting, with the resulting stablecoins distributed to the respective users' accounts.
The leveraged tokens under scrutiny are XRPDOWN and XRPUP, with a combined issuance of 10.3 million and 11.14 million, respectively. These tokens have provided Binance traders with the ability to take positions on XRP, while amplifying their exposure to market movements. By utilizing these leveraged tokens, traders can potentially increase their gains or losses without the risk of liquidation.
Why?
Binance has refrained from disclosing any specific reasons for the removal of XRPUP and XRPDOWN from its offerings. One can speculate that the decision is influenced by regulatory uncertainty surrounding XRP itself. As a digital currency closely associated with Ripple, XRP has been entangled in an ongoing lawsuit filed by the SEC.
Alex DovbnyaOn the other hand, tokens such as ADAUP and ADADOWN, related to Cardano token ADA — which was also the subject of the SEC's crackdown last month — continue to trade on Binance.
Arman Shirinyan
Godfrey Benjamin
Dan Burgin
Alex Dovbnya