Leading digital asset exchange Binance will be delisting all 25 of its FTX leveraged cryptocurrency tokens.
The exchange operator wrote in a company blog post published on March 28, 2020:
“Due to lack of understanding of how leveraged tokens work by many of our users, Binance has decided to delist all existing FTX leveraged tokens and corresponding trading pairs, and will stop trading at 2020/03/31 10:00 AM (UTC).”
FTX leveraged crypto tokens are (Ethereum) ERC-20 compliant tokens that give traders exposure to FTX’s perpetual futures, and offered as much as 3x leverage. For all futures contracts on FTX, there are three different leveraged digital tokens, including BULL for traders wanting to enter long positions, BEAR for taking short positions, and HEDGE for hedging against the direction taken by the market.
Binance confirmed that it has decided to delist BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL and XRPBEAR digital assets, and their trading pairs against stablecoins Tether (USDT) and Binance USD (BUSD).
FTX noted in a separate announcement that Binance will no longer offer support for leveraged crypto tokens because they “are complicated products, and Binance doesn’t want to manage the user education and customer support for them.”
FTX is funded by Binance, which reportedly invested millions of dollars in it last year.
Earlier this month, Binance introduced several peer-to-peer (P2P) digital currency trading options which support five major Latin American fiat currencies.
Traders can now purchase and sell virtual currencies directly with the Argentine peso (ARS), Brazilian real (BRL), Colombian peso (COP), Mexican peso (MXN), and the Peruvian sol (PEN).
Binance’s management has said that the P2P trading platform will support major digital assets, including Bitcoin (BTC), Ether (ETH), the exchange’s native token Binance Coin (BNB), BUSD, and USDT, the world’s largest stablecoin by market cap.