XRP-linked tokens are disappearing from the Binance exchange’s offerings. Although the move has long been announced, it still causes surprise and uncertainty among the platform’s users.
XRPUP and XRPDOWN disappear from Binance
On Friday, May 12, Binance enforced a long-sought decision to stop trading two XRP leveraged tokens, XRPUP and XRPDOWN. This was the result of the exchange’s earlier plans to cease trading for a number of leveraged tokens against USDT.
At 03:00 (UTC), trading for XRPUP/USDT and XRPDOWN/USDT was terminated, and all active customer trade orders were automatically closed by the system. Binance asked its users to exchange their XRPUP and XRPDOWN tokens for other assets, even before they were withdrawn from the market.
As a result of these actions, XRPUP and XRPDOWN tokens are no longer available on the platform. However, the exchange offers a redemption service for customers who still hold these tokens after the trade. Users can exchange their XRPUP and XRPDOWN for USDT, either through the dedicated Leveraged Tokens page or the wallet function.
The higher the leverage, the higher the risk!
Leveraged Tokens is an investment tool that attracts the attention of many investors who want to multiply their profits quickly. However, as Benjamin Franklin once said: “Investment in knowledge yields the best interest.” So before investing in leveraged tokens, it’s a good idea to gain an understanding of exactly how they work.
Based on the example of the XRP derivatives just delisted, the XRPUP token allowed investors to increase their profits when the price of XRP was rising, and the XRPDOWN token allowed them to take profits when the price was falling. It’s simple, but it’s worth remembering that leveraged tokens are not suitable for all investors. The risk of loss is always present and increases as the value of the leverage used increases.
Binance with significant movements in assets held
Back in January, Binance announced that it was going to close leveraged trading opportunities for twenty tokens in the coming months. With koli in the past month, the list was expanded by another six assets.
That’s not all, however. Much movement is also taking place around the so-called Innovation Zone. A few weeks ago, Shiba Inu fans celebrated the removal of the dog coin from this very area. This means that the development of the coin has been appreciated enough that it is being treated as a project with a strong foundation. In contrast, on Wednesday, May 10, the Jasma token was moved from stable projects to the innovation zone. This caused a real storm among the community, as the move by Binanace caused JASMY to lose nearly 40% of its value within 48 hours.