Binance, one of the largest cryptocurrency exchanges worldwide, has declared its intention to terminate the trading and subscription of XRPUP/USDT and XRPDOWN/USDT leveraged token trading pairs. These tokens were first introduced on Binance back in September of 2020. However, Binance plans to remove them from the exchange on May 12, 2023, at 3:00 a.m. UTC.
The tokens in question are XRPDOWN and XRPUP, which have a total issuance of 27,937,609,645.14 and 34,529,687.48, respectively. Their daily trading volumes are $545,212 of XRPDOWN and $476,396 of XRPUP.
Traders on Binance can utilize the leveraged tokens XRPUP and XRPDOWN to take positions on XRP with magnified exposure. These tokens represent a group of perpetual contract positions, with the token price fluctuating in line with variations in the notional value of the perpetual contracts in the group and modifications in the leverage multiple. By using these tokens, traders can boost their potential gains or losses without the fear of liquidation.
Binance has not given any specific reason for the removal of XRPUP and XRPDOWN. However, it is likely due to the regulatory uncertainty surrounding XRP. As a digital currency linked to Ripple, it has been the subject of a lawsuit by the U.S. Securities and Exchange Commission (SEC). The lawsuit alleges that the sale of XRP by Ripple was an unregistered securities offering.