Binance will list a new set of FTX leveraged tokens that will allow users to open 3x long or short positions for Bitcoin and Ethereum. This comes less than a month after the Maltese-based exchange made a strategic partnership with the derivatives exchange, FTX.
Binance Lists New Type Of Leveraged Tokens
The leading cryptocurrency exchange by volume, Binance, announced earlier today its newest addition for leveraged tokens. According to the publication, the company will list four FTX tokens – BULL, BEAR, ETHBULL, and ETHBEAR.
The first two represent Bitcoin. As the names suggest – BULL will equal a long BTC position, whereas BEAR will open a short one. The other two will do the same but with the second-largest cryptocurrency. ETHBULL opens a leveraged long position for Ethereum, and if the traders want to short it, they need to use ETHBEAR.
Each of them will be available for trading with two stablecoins – either Binance USD (BUSD) or Tether (USDT).
The four mentioned FTX tokens are ERC20 & BEP2 based but serve a different purpose than regular ones. They give 3x leverage exposure to cryptocurrency. The mentioned example shows that if a trader opens a long position with ETHBULL, for every 1% that ETH goes up, his position goes up with 3%. Alternatively, for every 1% that Ethereum drops, the ETHBULL position goes 3% down.
In addition, users can purchase the leveraged tokens, “just like normal tokens on a spot market.” However, Binance informs that there will be no need for them to manage collateral, margin, or liquidation prices.
It’s worth noting that in late December 2019, Binance made a strategic investment in the cryptocurrency derivatives exchange FTX. The latter was supposed to help with more liquidity and institutional product offerings, and the results are already visible.
Binance Expands In The Japanese Market
The company recently started negotiations with TaoTao and Z Corporation, which is a subsidiary of Yahoo Japan.
The idea between the potential collaboration is to launch trading services for users in Japan. Binance should deliver the required technology, while TaoTao and Z Corp “will collaborate with the Financial Service Agency to ensure full regulatory compliance in the Japanese market.”
Changpeng Zhao (CZ) commented on the matter, saying that Binance “couldn’t ask for a better partner than TaoTao in Japan.”
Many non-Japanese may not understand the significance of this. TaoTao & Z-Corp are subsidiaries of Yahoo Japan. YJ has been independent from Yahoo US for a long long time and is doing well. It is 48% owned by Softbank.
Couldn’t ask for a better partner than TaoTao in Japan. https://t.co/dhTaJkD7WC
— CZ Binance (@cz_binance) January 17, 2020
The post New on Binance: FTX 3x Long and Short Tokens of Bitcoin & Ethereum appeared first on CryptoPotato.
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