Binance which is the largest crypto exchange globally has decided to delist all of its FTX leveraged tokens. This decision has been made due to the user's response towards these tokens. Ever since the launch of leveraged tokens in December 2019, it came out that the users were finding difficulty in understanding them.
Due to this lack of understanding among the users, Binance has decided to delist all 25 FTX leveraged tokens from its platform. Binance has announced that it will stop trading of these tokens on its platform from 31 March 2020.
Binance has invested tens of millions of dollars in these tokens back in December 2019. The main purpose behind introducing these tokens was just to provide more facilities and benefits to its users.
Through these leveraged tokens, a user can make a huge purchase by paying less at the time of purchase. In return, these tokens will provide 3x leverage to the users in contrast to their purchase. These were the first tokens ever in the history of the crypto market which provided 3x leverage to the users. Leveraged tokens work great in the trading market as they automatically reinvest the profits.
As the report of delisting the leveraged tokens by Binance came, FTX has justified the act by saying it is due to the complicated nature of tokens. FTX has said that according to the Binance, leveraged tokens are very complicated products. It further explained that the users of exchange are finding huge difficulty while managing these tokens and are unable to understand them.
The assets that come under the category of delisting are BEAR, ETHBULL, XRPBEAR, XRPBULL, BULL, BNBBEAR, EOSBULL, ETHBEAR, EOSBEAR and BNBBULL. These were the assets and all the trading pairs that come under these assets against the USDT and BUSD will also be delisted.
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