Binance will delist all FTX leveraged tokens.

[ScamViruS]

Binance will delist all FTX leveraged tokens. Listing such a token and not educating the customer well. The result is that many traders have lost their funds. This sounds very bad to me. There is no harm to binance list and delist any new token but they have responsible to provide safe assets to trader. Many people have lost their fund by trade this token.

Fellow Binancians,

Due to lack of understanding of how leveraged tokens work by many of our users, Binance has decided to delist all existing FTX leveraged tokens and corresponding trading pairs, and will stop trading at 2020/03/31 10:00 AM (UTC). We will close deposits and withdrawals for all FTX leveraged tokens at 2020/03/31 08:00 AM.

From now until the above delisting time, users will be able to either:

Trade out of their existing Leveraged token positions.
Withdraw their Leveraged tokens.
Continue holding their Leveraged tokens until the trading pairs are delisted. We will credit your Binance account with the equivalent value held in each leveraged token at the time of delisting in BUSD and within 14 days.  
The assets being delisted include BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL and XRPBEAR.

The trading pairs being delisted include BULL/USDT, BULL/BUSD, BEAR/USDT, BEAR/BUSD, ETHBULL/USDT, ETHBULL/BUSD, ETHBEAR/USDT, ETHBEAR/BUSD, EOSBULL/USDT, EOSBULL//BUSD, EOSBEAR/USDT, EOSBEAR/BUSD, BNBBULL/USDT, BNBBULL/BUSD, BNBBEAR/USDT, BNBBEAR/BUSD, XRPBULL/USDT, XRPBULL/BUSD, XRPBEAR/USDT and XRPBEAR/BUSD.

We apologize for the inconvenience and appreciate your patience.

Source :- https://binance.zendesk.com/hc/en-us/articles/360041613471

[Yogee]

I think Binance did their part on educating users about leverage tokens. They released a beginner's guide not too long ago https://www.binance.vision/economics/a-beginners-guide-to-leveraged-tokens It is not their fault if users new to leverage trading don't read them and understand the risks.

Binance will probably relaunch after a few months when the dust settles.

To the traders who lost their funds, it's a painful way to learn but charge it to experience.

[joniboini]

There is no harm to binance list and delist any new token but they have responsible to provide safe assets to trader.

Any crypto trading is risky. These tokens are just as risky as margin or options tradings. You can't expect to gain high profits without a high risk of losing your money.

[adaseb]

It's good that they are doing this, way too many inexperienced people would lose all their money. Honestly the stock market should do something similar and prevent retail traders from trading options.

There are way too many people who are buying puts on the stock indices because they think the market will crash further. The stock market has a sideways day or up day and due to the IV and decay the option loses like 50% instantly and people are buying 4-5 figures worth of these options. Much more riskier than those tokens in my opinion. It's good that Binance is different and they protect their customers, instead of just saying "trading is risky!"

[exstasie]

I bet people got destroyed by the March 12th crash and then complained that they didn't understand the terms or risk involved with leveraged tokens.

I find the de-listing curious since these are only 3x leveraged instruments. Meanwhile, Binance offers margin trading with up to 5x leverage. Doesn't make sense to me.

Binance is also an investor in FTX, so the losses must have been pretty severe for this to happen. https://help.ftx.com/hc/en-us/articles/360038115631-Strategic-Partnership-with-Binance

[ScamViruS]

I think Binance did their part on educating users about leverage tokens. They released a beginner's guide not too long ago https://www.binance.vision/economics/a-beginners-guide-to-leveraged-tokens It is not their fault if users new to leverage trading don't read them and understand the risks.

Binance will probably relaunch after a few months when the dust settles.

To the traders who lost their funds, it's a painful way to learn but charge it to experience.

Yes they tried. But the traders did not understand properly. There is no fault of binance here. But this type of token really dangerous for normal trader.  This token has created a confusion between the normal trader. Binance ceo discussed in detail about delisting. But in that tweet I saw various complaints of traders with this token.


Tweet: https://twitter.com/cz_binance/status/1243920446250053633

[logfiles]

I think Binance did their part on educating users about leverage tokens. They released a beginner's guide not too long ago https://www.binance.vision/economics/a-beginners-guide-to-leveraged-tokens It is not their fault if users new to leverage trading don't read them and understand the risks.

They needed to do better. Most of the Margin trading platforms like bitmex and bybit provide lots of articles that educate people about margin trading. Binance and their CEO sometimes make rush decisions on certain things which is not cool and might make them unpopular if they don't change the approach.

They went ahead and listed Leveraged tokens because of the hype and now look at the mess

[metenjean]

Binance get much profit from his coin delist all of FTX leveraged tokens because they got much profit from payment fee with this coin and the end delist without give confirmation why this coin have delist from Binance exchange, maybe become owner of exchange give us much profit with some coin want to list.

[Strongkored]

Binance decision is final, in business will prioritize profit over education, that's why traders must understand the worst risks that will be experienced when choosing a trade like that, when they make a decision to get a large profit the risk of large losses also accompanies that decision.

[ScamViruS]

I think Binance did their part on educating users about leverage tokens. They released a beginner's guide not too long ago https://www.binance.vision/economics/a-beginners-guide-to-leveraged-tokens It is not their fault if users new to leverage trading don't read them and understand the risks.

They needed to do better. Most of the Margin trading platforms like bitmex and bybit provide lots of articles that educate people about margin trading. Binance and their CEO sometimes make rush decisions on certain things which is not cool and might make them unpopular if they don't change the approach.

They went ahead and listed Leveraged tokens because of the hype and now look at the mess

Yes you are right binance always tries to work with hype.  They suddenly move from one product to another. As a result, traders cannot properly educate about the previous product. If such activities are to come future, people will lose trust in the binance. Lots of traders lose their fund because of less knowledge about this token.   

[Flux0z]

A lot of people seem to be pretty mad about this (Check Reddit).

CZ and Binance as a platform has been involved in a lot of shady things, including but not limited to the Steem scandal as well.
It seems like Binance is losing popularity and quickly, as can be seen if you follow CZ and the comments on his latest tweet today.

It really woudn't surprise me if DEX's starts to take the lead in the future, as they are permissionless, trustless, and 100% safe to use, by anyone. A real DEX cannot be shut down, unlike Binance's FAKE DEX, which they only built to combat future competition.

I'm a holder of Blocknet, which was the first project to release a fully flexed decentralized exchange, so I'm pretty happy to see whenever new DEX's get's adopted and used. I'm all for decentralization.

[hugeblack]

It is better for you to teach the users how to value the risks and thus they will understand the reason for the profit or loss instead of making them lose their money "because you will lose at a higher rate if you do not understand what to do" and thus people will stop using the platform.
The thing that confuses me is how to make acceptance or removal decisions? We all know that the platform delisted a number of tokens/cryptos, which caused sharp fluctuations in prices. What is the mechanism for selecting or removing these tokens?

[ScamViruS]

It is better for you to teach the users how to value the risks and thus they will understand the reason for the profit or loss instead of making them lose their money "because you will lose at a higher rate if you do not understand what to do" and thus people will stop using the platform.
The thing that confuses me is how to make acceptance or removal decisions? We all know that the platform delisted a number of tokens/cryptos, which caused sharp fluctuations in prices. What is the mechanism for selecting or removing these tokens?

Yeah. After that it seems they can do whatever they want. Many customers have lost their funds. They have no idea about that. Binance should have educated their traders well before listing a high risk asset. If this continues, people will no longer trade in binance. Because now there are many good exchanges.

[Stedsm]

--snip--
What is the mechanism for selecting or removing these tokens?

Maybe they are not getting enough volume for that specific token and are thus not interested in having an illiquid token be kept on their platform for more time?!

@OP, what kind of losses incurred due to Binance's delisting procedure? I don't see anybody complaining about any such losses nor are there any losses reported by Binance as well. All leveraged tokens have very high probability of making you lose your entire capital, and they have given a deadline to move out of your positions till then (so I guess you've still got some time to either wait or get liquidated completely if your position is in huge loss already).

[DarkDays]

Well, there's pretty much no point in having a secondary market for these.

Why on Earth would Binance think it was a good idea to list one of it's major competitors USP products? Pretty crazy really.

These tokens have sufficient liquidity on FTX itself, so I don't see who would actually go to another exchange to trade them, particularly when FTX by far exceeds Binance for these tokens in terms of trading volume.

Either way, glad Binance are delisting more shitcoins, hopefully this helps to consolidate volume to the more important assets.

[JeromeTash]

A lot of people seem to be pretty mad about this (Check Reddit).

CZ and Binance as a platform has been involved in a lot of shady things, including but not limited to the Steem scandal as well.
It seems like Binance is losing popularity and quickly, as can be seen if you follow CZ and the comments on his latest tweet today.

Too much greed is also not good. I don't know why CZ just doesn't settle for a couple of things. He wants to be everywhere. From trading bot services(3commas), DEXes, web browsers (read Brave browser) to wallet services (Trust wallet). This is not looking good for Binance in the long run. If one of the services suffers a catastrophe, the popularity is over for binance.

[STT]

Seems very similar to leveraged ETF trading which is possible even by small investors at home but is high risk.   One broker was fine with me shorting via ETF but another wouldnt allow me to take part in anything that held futures contracts.   As Iam obviously unable to hold a barn full of corn myself then how else am I to engage with the market so I did not find that helpful and I would generally disagree with what Binance has done here.

 However I would expect they have done these measures to avoid excess regulation or complaints from government type bodies.   Its going to represent too much risk to the company in terms of bad reputation to continue and allow trading of what is no doubt a high risk product.   Something like this with 3x or more leverage should only be traded during a day, not held over night as anything can and does happen especially right now with the bigger news and volatility coming through.
They could have just restricted and made people jump through hoops but sadly that raises the cost and lowers the volume and point of profit for them further.

[STT]

Too much greed is also not good.

Not sure I view it that way, I just hope it he holds himself to a high standard.   If you think he is just cashing in without much care or attention then fair enough but I got nothing negative to say about long term players in crypto continuing to repeat their previous success.   Helps the reputation of the whole sector if we have some really long term determined and distinguished people who make themselves useful and yep charge a profit for their products.

[GreatArkansas]

Binance decision is final, in business will prioritize profit over education, that's why traders must understand the worst risks that will be experienced when choosing a trade like that, when they make a decision to get a large profit the risk of large losses also accompanies that decision.

This is also what on my mind. But do you think that's the only reason or Binance can't make any money for those leveraged tokens?
In my country, a lot of people got surprised why these leveraged tokens are already gone in Binance, they don't even read some news for their trading platform.
But for sure, there are still some reasons behind why they delisted all the FTX leveraged tokens, not only about the lack of educations for traders who using leveraged tokens.

[exstasie]

Something like this with 3x or more leverage should only be traded during a day, not held over night as anything can and does happen especially right now with the bigger news and volatility coming through.

Yup, it seems like this aspect of margin trading is lost on people. Volatility aside, margin trading also has carry costs. Whether you are paying perpetual swap interest, P2P loan interest, or administrative management fees, it costs money to hold margin positions. They aren't good for hodling. FTX tokens have a 0.03% daily management fee.

They could have just restricted and made people jump through hoops but sadly that raises the cost and lowers the volume and point of profit for them further.

I think that was the point. To use their 5x margin features, you need to agree to a bunch of risk stuff and do KYC verification. FTX token trading didn't require any of that.