Binance removes leveraged coins and explains why
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Answer Binance removes leveraged coins and explains why
In a sudden exit from the Binance platform, the latter announced the removal of the leveraged coins from its platform, which made many coin holders enter a state of hysteria and question about the fate of these coins they hold.
For Mr. Sam Bankman Fred, CEO of the FTX trading platform, to intervene and clarify some of the things that we will address in the coming lines.
Binance has announced that it will remove the leveraged coins offered by the FTX trading platform.
The announcement said that Binance will remove these coins due to users not understanding how leveraged coins work.
Binance removes FTX coins:
Binance announced that users have until March 31 to transfer the coins they intend to remove.
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For cryptocurrencies that are not transferred after the specified date, Binance has stated that they will be credited to user accounts at the equivalent value held in each leveraged currency at the time of write-off and converted into BUSD.
The currencies to be written off are as follows:
BULL and BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL, XRPBEAR.
The symbols BULL and BEAR represent long and short positions with x3 leverage in bitcoin, respectively.
For every percentage point Bitcoin rises, BULL will increase by 3%. The same is true for landing.
Since the announcement, users have been massively selling the coins involved in the removal process on Binance.
Others have already complained, citing losses of several thousand dollars due to the removal of these coins.
Changpeng Zhao, CEO of Binance, responded to every criticism with what appears to be the same message, being copied and pasted.
The CEO points out that the reason for the removal was due to the user’s lack of understanding when it came to these volatile products.
They are not designed for long-term retention. Its value decreases over time as the markets (the underlying asset) fluctuate back and forth.
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The main reason for delisting is that a lot of users don’t understand it.
– CZ Binance 🔶🔶🔶 (cz_binance) March 28, 2020
During the recent market crash, many leveraged coin holders incurred huge losses.
In response to the delisting, Sam Bankman-Fried, CEO of trading platform FTX, said that Binance was mistaken for its failure to educate users.
1) write off Binance LTs; You don’t want to manage user education/support
2) FTX includes LT USDT pairs to offset
3) You can either send your LTs to your FTX wallet or it will convert to BUSD on BinanceMore info LT:
– SBF (SBF_Alameda) March 28, 2020
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He added explicitly:
Binance will be removing leveraged coins next week, you can see their announcement over here.
Leveraged tokens are complex products, and Binance does not want to manage, educate, and support users.
The announcement also stated that users who wish to continue to use the FTX leveraged coins should do so by opening an account with the FTX trading platform.
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