Binance, a leading cryptocurrency exchange, is again making headlines with its announcement of delisting leveraged tokens XRPUP and XRPDOWN on July 25. This move comes as a response to the legal action taken by the United States Securities and Exchange Commission (SEC) against both Binance and Ripple Labs, alleging the sale of unregistered securities.
Binance has urged users to redeem their tokens using the wallet function before the delisting date to ensure a seamless transition for its users. As compensation, Binance will provide affected users an equivalent amount of Tether’s USDT stablecoin.
Leveraged tokens, which have gained popularity among investors seeking to enhance their exposure to specific cryptocurrencies like XRP, track the price movements of the underlying cryptocurrency by dynamically adjusting leverage through a sophisticated algorithm.
This decision to delist XRPUP and XRPDOWN leveraged tokens is not the first strategic move by Binance this year. On May 26, the exchange removed 21 spot trade pairs from trading. Notable cryptocurrencies impacted by this change included Avalanche (AVAX), Axie Infinity (AXS), Polkadot (DOT), Fantom (FTM), Chainlink (LINK), Sandbox (SAND), and Shiba Inu (SHIB).
While Binance assures users that they can continue trading these assets with different pairs, the delisting was necessitated by the loss of the exchange’s banking partner for the AUD on- and off-ramp. Consequently, customers were unable to utilize the PayID payment facility.
Despite these adjustments, Binance remains committed to providing a user-friendly trading experience. The exchange emphasizes that users can still trade the affected assets, albeit with alternative pairs. Binance’s dedication to maintaining a seamless platform has prompted proactive measures to mitigate the impact of changes in trading options.
The forthcoming delisting of XRPUP and XRPDOWN leveraged tokens by Binance reflects the ongoing legal challenges faced by the exchange and Ripple Labs. Users are strongly advised to redeem their tokens before the specified date, with Binance offering the USDT stablecoin in exchange.
Although the delisting of leveraged tokens follows the earlier removal of several spot trade pairs, Binance assures its users that they can continue trading the affected assets using different pairs. The exchange’s proactive approach aims to ensure a smooth trading experience amid the changes prompted by the loss of banking partnerships.
Moreover, the removal of several spot trade pairs earlier this year was necessitated by the loss of Binance’s AUD banking partner. However, despite these challenges, Binance remains dedicated to supporting its users’ trading activities by providing alternative trading pairs.