Binance blamed buyer confusion for its FTX leveraged token delisting, explaining that customers held the tokens as an alternative of buying and se
Binance blamed buyer confusion for its FTX leveraged token delisting, explaining that customers held the tokens as an alternative of buying and selling them, which was the initially supposed use case.
“The leveraged tokens aren’t designed for long run holding, which is what we seen customers have been doing,” a Binance consultant advised Cointelegraph in an e mail. “The tokens will devalue over time as costs go up and down.”
The trade rep mentioned Binance at present has no plans for explaining and relisting the eliminated merchandise.
Binance introduced the elimination on March 28, which is able to take impact on March 31
Binance introduced plans for FTX leveraged token elimination in a March 28 announcement, simply weeks after launching the merchandise. The trade cited customers didn’t perceive the merchandise, main the elimination.
“The tokens are designed for short-term trades,” the Binance consultant defined to Cointelegraph. “If customers maintain BULL tokens when costs are constantly going up, then the BULLl tokens will outperform 3X lengthy BTC,” the rep mentioned. “If customers maintain the tokens when costs are fluctuating (as most crypto property do), then the tokens will underperform 3X lengthy BTC.”
The merchandise adopted a 2019 funding in FTX
Binance unveiled an fairness funding in derivatives trade FTX in December 2019. The trade additionally purchased a long-term stake within the derivatives platform’s native FTX token.
“Binance and FTX will work collectively to supply higher buying and selling merchandise and platforms for the merchants, develop the market and additional develop the cryptocurrency ecosystem,” the Binance rep defined concerning Binance’s rationale behind the deal.
The consultant identified FTX’s fast progress and recognition. Referencing the outfits buying and selling merchandise and over-the-counter buying and selling, the consultant added:
“As a part of the strategic partnership, FTX will assist construct out the liquidity and institutional product choices throughout the Binance ecosystem, together with Binance Alternate (Binance.com) and the Binance over-the-counter (OTC) buying and selling desk.”
Moreover, Binance and FTX plan to collaboratively construct an array of merchandise.
Binance has seen many headlines in latest weeks as the huge operation continues enlargement. Simply yesterday, Binance Academy began up a China-based blockchain accelerator.