Binance, one of the world’s largest cryptocurrency exchanges, has announced its decision to delist leveraged tokens XRPUP and XRPDOWN from its platform. The tokens, which were first introduced in September 2020, will be removed from Binance on May 12, 2023, at 3:00 a.m. UTC.
The move comes amid regulatory uncertainty surrounding XRP, a digital currency linked to Ripple, which has been the subject of a lawsuit by the U.S. Securities and Exchange Commission (SEC).
With a total issuance of 27,937,609,645.14 and 34,529,687.48, respectively, XRPDOWN and XRPUP allow traders to take positions on XRP with magnified exposure through perpetual contract positions. By using these tokens, traders can boost their potential gains or losses without the fear of liquidation. However, Binance has not given any specific reason for the removal of these tokens.
Despite the daily trading volumes of $545,212 for XRPDOWN and $476,396 for XRPUP, Binance has deemed it necessary to terminate the trading and subscription of these tokens. This decision is likely due to the ongoing lawsuit by the SEC against Ripple, which alleges that the sale of XRP was an unregistered securities offering.
While the delisting of XRPUP and XRPDOWN will be a disappointment for some traders, Binance has indicated that it remains committed to complying with regulatory requirements and ensuring the safety of its users. Binance continues to monitor regulatory developments and will make further announcements as necessary.
