Crypto exchange leader Binance announced on February 19 that it will discontinue support for leveraged trading of six tokens and subscription services.
According to an X post, these include BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN paired with the USDT stablecoin.
Six Leveraged Trading Tokens Affected
Giving a timeframe for the discontinuance, the world’s largest crypto exchange stated that the support will end by February 28 at 06:00 (UTC).
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@Binance announced the decision to end support for leveraged tokens paired with Tether (USDT) on Feb. 19.
Detailed timeline in attached image
(source –@binance ) pic.twitter.com/xQN7KckOPK
— Akshayy.nft (@akshayynft) February 19, 2024
According to an image shared, the final delisting of the affected leveraged tokens will be on April 3, 2024, by 6:00 (UTC).
The Binance exchange has not stated any reasons for the decision. Margin and regular leverage services will still be offered, however.
Self-leveraged tokens allow investors to make forecasts on the price movement of an asset. They are often leveraged versions of regular assets that enable investors to make high returns on their investments. Like all leveraged assets, however, investors can experience huge losses in a wrong forecast.
For context, in a self-leveraged BTCUP/USDT trade, investors can select ‘Buy’ to make a forecast that the price of the underlying leveraged token will rise and vice-versa.
Leveraged Trading Out, Margin Trading In
Despite the removal of self-leveraged tokens, Binance Futures is ramping up margin-based trade options.
According to a blog post by the crypto exchange, it will be adding USDC-margined ORDI (Ordinals) Perpetual Contracts to its Futures platform.
#Binance Futures will launch the USDC-margined $ORDI Perpetual Contract at
Feb 22 2024, 07:00 (UTC)
Read more
— Binance Futures (@BinanceFutures) February 19, 2024
The service will kick off on February 22, and customers will get a 10% discount trading fee for accessing the service. The discounted fee offering is scheduled to end by April 3, 2024.
Further details shared state that investors will have a 75x maximum leverage ceiling. This means investors can open leveraged positions 75 times higher than their initial capital. The maximum funding rate will be pegged at +2% or -2%. The funding fee settlement will be reassessed on a four-hour interval.
The minimum accepted tick size will be set at 0.001 USDC, making it more accessible for retail investors.
The ORDI blockchain is a subset of the new generation BRC-20 token standards operating on the Bitcoin network. Created by an anonymous developer, it allows data like video, music, audio, and images to be written on individual Satoshis (units of each Bitcoin). This feature enabled the onboarding of non-fungible tokens (NFTs) on the Bitcoin network.
The Bitcoin network, by design, lacks support for smart contracts, which are essential for NFT development, as they enable autonomous code execution and financial transactions on the blockchain.
With the creation of the Ordinals protocol in early 2023, NFT trading became available on the world’s largest crypto exchange.
So far, the BRC-20 token standard ecosystem has grown and now records $2.9 billion-plus in market valuation.
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