In an unexpected announcement that has sent shockwaves through the cryptocurrency community, Binance, one of the world's leading crypto exchanges, has declared it will terminate support for a selection of its leveraged tokens. This decision will directly affect tokens associated with major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Binance's own BNB, starting April 3.

On February 19, Binance revealed plans to halt support for leveraged tokens paired with Tether (USDT), including BTCUP/BTCDOWN, ETHUP/ETHDOWN, and BNBUP/BNBDOWN. Trading and subscription activities for these tokens will cease on February 28 at 06:00 UTC, urging traders to convert their holdings into other assets before this deadline to avoid potential losses.

Following the suspension, Binance will progressively delist and end the redemption of these tokens from April 1 to April 3. Users who do not redeem their tokens by the deadline will see their investments automatically converted to USDT, reflecting their value at the time of delisting, and credited to their accounts within 24 hours.

Leveraged tokens, known for offering traders leveraged exposure to cryptocurrencies without the need for collateral or maintenance margins, have been a popular instrument for speculative investment. However, Binance warns of the inherent risks, including market volatility and the complex dynamics of perpetual contracts.

This move by Binance marks a significant shift in the crypto trading landscape, highlighting the complexities and evolving nature of leveraged trading. As the April deadline approaches, traders are advised to reassess their strategies and prepare for the upcoming changes.

By simplifying its offerings, Binance aims to streamline its services and reduce the risks associated with leveraged trading for its users, reinforcing its commitment to providing a safe and reliable trading environment in the fast-paced world of cryptocurrency.