Binance Blames Users For Leveraged Ftx Removal
Binance accused client disarray for its FTX leveraged token delisting, clarifying that clients held the tokens as opposed to exchanging them, which was the initially expected use
“The leveraged tokens are not designed for long term holding, which is what we noticed users were doing,” a Binance rep said. “The tokens will devalue over time as prices go up and down.”
The rep said Binance has no immediate plans for explaining and relisting the removed products.
Binance announced the removal on March 28. The removal took effect on March 31
Binance reported plans for FTX leverage token evacuation in a March 28, only a few weeks after announcing the product. Binance announced that clients didn’t comprehend the products, thus leading to its removal.
“The tokens are designed for short-term trades,” the Binance representative explained. “If users hold BULL tokens when prices are continuously going up, then the BULLl tokens will outperform 3X long BTC,” the rep said. “If users hold the tokens when prices are fluctuating (as most crypto-assets do), then the tokens will underperform 3X long BTC.”
The 2019 Products
Binance revealed an equity investment in derivatives exchanges FTX at the end of last year. The platform also purchased a long-term stake in the derivatives platform’s native FTX token.
“Binance and FTX will work together to offer better trading products and platforms for the traders, grow the market, and further develop the cryptocurrency ecosystem,” the Binance rep explained regarding Binance’s rationale behind the deal.
The rep also pointed out the growth and popularity of FTX. He added, “As part of the strategic partnership, FTX will help build out the liquidity and institutional product offerings across the Binance ecosystem, including Binance Exchange (Binance.com) and the Binance over-the-counter (OTC) trading desk.”