In an effort to streamline its operations, the global cryptocurrency exchange giant Binance recently announced plans to discontinue certain leveraged token services. Specifically, support for leveraged tokens associated with Bitcoin and paired with Tether will cease by April 3rd, 2021. Among the affected leveraged tokens are BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN.

The termination process will begin on February 28th, with Binance halting trading and subscription services for the impacted leveraged tokens. This means that all trade orders associated with these tokens will be automatically removed once the deadline passes. Consequently, Binance is advising affected token holders to convert their holdings into other assets before the suspension takes effect.

Following the February 28th deadline, gradual steps will be taken to fully delist and stop the redemption of these tokens from April 1st to April 3rd. Token holders will have until April 1st to redeem their tokens for available value.

Failure to meet the redemption deadline may result in a mandatory conversion of the tokens into USDT (Tether). This conversion will be based on the token’s market value on the delisting date, after which they will be removed from holders’ wallets within 24 hours.

Despite their potential benefits, leveraged tokens often come with risks. These include exposure to high-risk positions without the need to maintain a margin level or worry about liquidation. Binance, however, cautions that trading such tokens also carries inherent risks, including potential impacts from price movements in the perpetual contracts market, premiums, and funding rates.