- Binance is delisting Cardano leveraged products.
- Users are urged to redeem their tokens before August 16th.
- Regulatory uncertainty surrounding Binance and Cardano has added complexity to the situation.
It has become increasingly challenging for Binance, the world’s largest crypto exchange, to navigate its current regulatory turbulence as regulators worldwide target the platform with lawsuits and stringent policies.
After suffering an $870 billion trade volume drop this year, Binance is trying to downsize and restructure to sustain the regulatory onslaught. Its latest move involves dropping Cardano leveraged products from its platform.
Binance Delists Cardano Leveraged Products
On August 9, Binance notified its users that it would delist Cardano leveraged token trading pairs ADAUP and ADADOWN on August 16. The leveraged products reported a combined issuance of 1.55 billion tokens, with a trading volume exceeding $1.5 million.
Operating as perpetual contracts, these tokens allowed traders on Binance to gain amplified exposure to long and short positions on Cardano’s ADA. Traders would use these tokens to de-risk their positions from the threat of liquidation on their positions.
Binance advised users to redeem their tokens using the wallet function before delisting. If users still possess the leveraged tokens after the delisting, the exchange will convert them into Tether’s USDT stablecoin based on their net asset value.
Binance has yet to explain why they’re removing the tokens; however, it is likely because of ADA’s regulatory uncertainty and classification as a security. Earlier, the exchange delisted XRP and leveraged products from its platform.
On the Flipside
- US regulators are pressuring exchanges to delist tokens classified as securities, such as Solana, ADA, and MATIC.
- Coinbase CEO Brian Armstrong asserted that the SEC had advised the firm to relish every asset but Bitcoin.
- Congress is working on bills to bring clarity to the crypto markets.
Why This Matters
Binance’s decision to delist ADA amidst ongoing legal battles holds substantial implications and signals the mounting pressure faced by both the exchange and the token from regulators.
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Read Why Binance Delisted XRP: