Binance to Soon Delist all FXT Leveraged Tokens
Binance, one of the most popular crypto exchange networks, recently announced a possible delisting of all FXT leverage tokens, including their pairs. The FXT leverage tokens are just a recent addition in Binance, but now Binance, citing complexity, decided to remove the token.
The delisting of the FXT leverage tokens will start precisely on 31st March at 10:00 a.m. All users got the freedom to trade out their tokens 2 hours before this announcement. The platform will refund all holders their full tokens in a period of 14 days after the delisting, using the BUSD.
Changpeng Zhao, the CEO of Binance, in a tweet noted that it has been hard for users to understand how the leveraged tokens work. However, the decision to delist the tokens was problematic since they are the most actively traded ones on the platform. Moreover, although the tokens have shown some degree of reliability, holding them for a long time will lead to losses.
According to Zhao, user safety is one of the most vital features of the platform. Many Twitter users have shown skepticism about the recent announcements, especially considering the users feel that margin trading is even riskier.
Leveraged tokens have similarities to autonomous trading bots, helping users automatically invest the profits they make in margin trading. But in leveraged trading, the reinvestment is often focused on top risk minimization. These tokens are not an excellent long term investment, especially since they lose their value immediately when the market fluctuates.