Binance is going to list their own leveraged tokens!!

[ScamViruS]

Few days ago, Binance delisted FTX leverage tokens to protect customers. I would have accepted it if really intention was real, although many traders lost their funds due to lack of proper education. But today everything became clear to me why binance delisted FTX leverage tokens. Because binance is going to list their own leverage tokens (BLVT). Which it seems to me again that some innocent traders will lose their funds. Be careful before trading on such products, especially newbies. I don't know how useful these products are for the crypto community.

Fellow Binancians,

Binance will launch Binance Leveraged Tokens (BLVT) and simultaneously list the first pair of leveraged tokens, BTCUP and BTCDOWN, on 2020/05/14 at 10:00 AM (UTC), with BTCUP/USDT and BTCDOWN/USDT trading pairs. BTCUP and BTCDOWN will only be available to trade via Binance Spot trading’s advanced interface (after the listing time above) and are not yet be available to trade via Binance’s Spot Basic/Classic trading interfaces or mobile trading apps.

Binance Leveraged Tokens (BLVT) are newly designed by Binance, after careful consideration of user requests and evaluation of existing leverage products. Binance Leveraged Tokens provide lower risks and fees compared to derivatives and other conventional leveraged tokens (not issued by Binance), providing users with better protection.

Full Announcement: https://binance.zendesk.com/hc/en-us/articles/360043016272

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[exstasie]

Few days ago, Binance delisted FTX leverage tokens to protect customers. I would have accepted it if really intention was real, although many traders lost their funds due to lack of proper education. But today everything became clear to me why binance delisted FTX leverage tokens. Because binance is going to list their own leverage tokens (BLVT).

There is probably an element of truth to that, although the underlying specs of these tokens are quite a bit different from FTX tokens:

Binance Leveraged Tokens do not maintain constant leverage. Instead, Binance Leveraged Tokens maintain a constant target leveraged range between 1.5x and 3x. Since Binance Leveraged Tokens are not forced to maintain a set degree of leverage, Binance Leveraged Tokens rebalance on an as-needed basis, such as during extreme market movements.

The true target leverage level is constantly changing and hidden from outside observation. Both the timing of the rebalance, and the target leverage of the rebalance, is not shown to observers or algorithms, making it much harder to guess future trades and front-running it.

So leverage will supposedly ramp down during extreme volatility, protecting holders.

I'm honestly not sure how to feel about the lack of transparency concerning the underlying leverage. As a trader, this will make calculating entries and exits difficult since the underlying leverage can change at any time, without notice.

[JeromeTash]

Not even surprised at all, It's always about money 
The may try to sweet talk about the modifications and all that crap but it's now clear why the first had to delist the FTX Leverage tokens. People have to be careful and learn more about how those tokens work nonetheless before starting off any serious trading.

[coupable]

I don't really believe in the good willingness of binance to protect its users losing their deposits. Is creating another new token the only available option? Traders lose their funds while trading shitcoins, would binance delist shits? If so, then it will create its owns, just like how Yobit made the investbox.
Note that binance has its own token bnb + a stable coin + a token for trustwallet app + more others.
The honesty in the crypto field doesn't always work as expected, as trusted companies can find new methods to deceive users. I don't suggest anybody to use new issued tokens especially coming from a greed companies like binance.

[Lizzylove1]

You delisted one and listed yours, is Binance going to prevent people from losing money this time with the the listing of their levarage token? I don't like this attitude if Binance

[gantez]

You delisted one and listed yours, is Binance going to prevent people from losing money this time with the the listing of their levarage token? I don't like this attitude if Binance

The is pure power use. Binance is making people take anything they offer because of it popularity. Are they not going to function alike  Why delete one and allow theirs. Competition is healthy for business.

[UserU]

The is pure power use. Binance is making people take anything they offer because of it popularity. Are they not going to function alike  Why delete one and allow theirs. Competition is healthy for business.

Just like how they recently bought over CMC, they could even manipulate the trading volumes to their advantage.

[BitcoinTurk]

In fact, this improvement was something I expected because Binance had previously obtained the user experience by listing FTX tokens. Although this is a good effect for Binance, I cannot say that it is very good for the market. I hope Binance cannot become a leader in this field after this listing, or it will be very simple for it to dominate the market. I think that waiting for a short period of time after the trial with FTX tokens is completely for the users to gain experience.

[cryptoaddictchie]

Just like how they recently bought over CMC, they could even manipulate the trading volumes to their advantage.

They are doing it on their exchange. Im a trader there so its natural for me to notice, if there are bots and even market maker applied to certain tokens traded there. Ive been using Binance for a long time and never got issue on market slip. But during halving time, thats when I almost rekt because the system respond is not functioning well like delays on closening up position which instead of losing $30 you loses more than close to $56 cause SL didnt functioning. I think many users are affected, but CZ is very wise to apprehend situation just like OP has said. Sounds fishy but thats the real deal. When its about money anything can really be possible.

CMC ventures will not be wasted surely CZ has a major upgrade with that, as I saw his tweet about what do you like about CMC? Means his planning something. Of course expect it will favor its alliance such as trust wallet, WazirX, thats how Binance work and roll

Not really affected much but just a keen observation.

[justdimin]

This wasn't really something that was missing from the public. But I get it, others are doing it and they are making money with it, so Binance probably said why not them as well and started working on it and now releasing it. I have always been very against leverages because it is the worst part of humanity, we are too inclined to over extend ourselves and that is the risky part of trading.

There was a seen in movie leverage where main character talked about how over expansion never really stops, all the nations in history who have been powerful eventually reached to a point where they couldn't stop and resulted in collapse, that is not just nations, it happens to us individually.

We make 1000 dollars from 100 dollars? We do not try to say "hey maybe I should keep the 500 and work with the other 500, divide it by 5 and do that 100 dollar to 1000 dollar again". No we say "let me turn this 1000 to 10k now" and fail.

[squatz1]

Few days ago, Binance delisted FTX leverage tokens to protect customers. I would have accepted it if really intention was real, although many traders lost their funds due to lack of proper education. But today everything became clear to me why binance delisted FTX leverage tokens. Because binance is going to list their own leverage tokens (BLVT).

There is probably an element of truth to that, although the underlying specs of these tokens are quite a bit different from FTX tokens:

Binance Leveraged Tokens do not maintain constant leverage. Instead, Binance Leveraged Tokens maintain a constant target leveraged range between 1.5x and 3x. Since Binance Leveraged Tokens are not forced to maintain a set degree of leverage, Binance Leveraged Tokens rebalance on an as-needed basis, such as during extreme market movements.

The true target leverage level is constantly changing and hidden from outside observation. Both the timing of the rebalance, and the target leverage of the rebalance, is not shown to observers or algorithms, making it much harder to guess future trades and front-running it.

So leverage will supposedly ramp down during extreme volatility, protecting holders.

I'm honestly not sure how to feel about the lack of transparency concerning the underlying leverage. As a trader, this will make calculating entries and exits difficult since the underlying leverage can change at any time, without notice.

While true, it does look a bit shady for Binance to go ahead and list their own leveraged tokens after delisting other tokens.

You're totally right on there being less risky though, but still having some of the inhererent issues still present (like any other leveraged tokens) is still something that is going to hurt investors who don't understand it. But at the end of the day, learning about how the token works and how the leverage works is on the investor. Information can be supplied by Binance, but they can't force you to read and understand.

So -- does look a bit shady, but I guess this is a step in the right direction for these tokens.

[Paycoinzzz]

My sincere advice is not to touch or trade with coins like this. It is actually a calculation trick and it is always beneficial to the house. There are a lot of people who don't understand the nature of this coin and have been split 5 and even divided 10 assets because of the hold cheat coin. If you want to use leverage, you can use their margin trading system, which is simpler and closes the position faster. For trading spots, you should only trade with regular coins. That is the safest way for your property.

[UserU]

They are doing it on their exchange. Im a trader there so its natural for me to notice, if there are bots and even market maker applied to certain tokens traded there. Ive been using Binance for a long time and never got issue on market slip. But during halving time, thats when I almost rekt because the system respond is not functioning well like delays on closening up position which instead of losing $30 you loses more than close to $56 cause SL didnt functioning. I think many users are affected, but CZ is very wise to apprehend situation just like OP has said. Sounds fishy but thats the real deal. When its about money anything can really be possible.

CMC ventures will not be wasted surely CZ has a major upgrade with that, as I saw his tweet about what do you like about CMC? Means his planning something. Of course expect it will favor its alliance such as trust wallet, WazirX, thats how Binance work and roll

Not really affected much but just a keen observation.

The bots thing are pretty much prevalent, especially on Binance. The last time I traded there, the movements were so obvious the moment their price ranges were triggered.

I reckon for these type of sudden market movements, there are bounds to be delays or failures in order executions. Encountered one last year when BTC crashed to 5K+ and my sell order didn't even execute. That's on eToro by the way.

And with that guy in charge of the largest platform, no doubt since they have the numbers. But as long as it's for a good cause, that should be fine.

[Subbir]

Many people aren't ready to understand margin trading So albeit Binance makes its own leverage token list it'll take an extended time to launch nobody can easily lose more. The system here is extremely hard so it's better to skip this token now and trade other tokens Here it's possible to scale back the quantity of loss but within the case of Binance, it's impossible in leverage token it'll not depend upon the market they're going to control themselves They will therefore have less profit as their own currency.

[ScamViruS]

Many people aren't ready to understand margin trading So albeit Binance makes its own leverage token list it'll take an extended time to launch nobody can easily lose more. The system here is extremely hard so it's better to skip this token now and trade other tokens Here it's possible to scale back the quantity of loss but within the case of Binance, it's impossible in leverage token it'll not depend upon the market they're going to control themselves They will therefore have less profit as their own currency.

I don't think those who know about leverage trading will trade on such tokens. These tokens are very dangerous during sudden market movement. If you look at the time of the last market movement. Binance ceo CZ himself said that these tokens are dangerous so he delisted them. But it is now clear that he did it to reduce his competition.

[rexxarofmoknathal]

Not really that impressive.

Binance literally just copies what all the other exchange do, then somehow become the most popular exchange for that thing.

It already did it before with lending, derivatives trading, margin trading, IEO etc.

Now they're about to copy FTX once again.

Soon they'll run out of steam or at least create something original, I hope.

[slaman29]

This news slipped by me strangely enough, and makes me wonder now as I've missed several announcements already, is Binance deliberately leaving out some countries from these updates?

Anyway, a lot of anger from those using FTX before but I think once you've tried Bitmex, anything else looks amateur and have to say leveraged accounts on Binance don't quite have the same advanced features. It's like rexxar says: they copy, and copy worse, and then move on to the next cool thing.

[exstasie]

Not really that impressive.

Binance literally just copies what all the other exchange do, then somehow become the most popular exchange for that thing.

It already did it before with lending, derivatives trading, margin trading, IEO etc.

They are only most popular in the altcoin world. Their platforms are all rife with fake volume, most of which is exchange-derived I'm sure. Bitfinex still dominates the spot margin market and Bitmex still dominates derivatives.

I agree though, they are getting pretty annoying. Buying everything up, expanding into every possible niche. I'm getting sick and tired of their brand. Branding overload.

I have noticed CZ has been taking a lot of shit on Twitter. Binance seems to be falling out of public favor lately. I wonder if they have passed their peak.