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Cryptocurrency watchdog strikes again! Just broke away from FTX, shocking news that Binance will issue its own leveraged tokens.

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Cryptocurrency watchdog strikes again! Just broke away from FTX, shocking news that Binance will issue its own leveraged tokens.

The Block, a foreign media outlet known for its strong coverage of the cryptocurrency industry, has once again made a splash by revealing that the cryptocurrency exchange Binance is planning to issue its own leveraged tokens. If this news is true, it would be particularly ironic compared to Zhao Changpeng's decision to delist leveraged tokens on FTX in the past, citing "to protect user assets."

Binance to Launch Leveraged Tokens Soon?

The Block, a prominent crypto media outlet, seems to have inside information on all things happening at the cryptocurrency exchange Binance. This year, The Block has been ahead of Binance's major announcements, including the Binance card, acquisition of CoinMarketCap, and the launch of options trading, reporting on them before Binance's official announcements. Now, The Block's Research Director, Larry Cermak, has once again revealed that Binance is set to introduce its own leveraged token soon, with the token named "BTCUP."

While there are no other sources confirming Larry Cermak's claim at the moment, given The Block's track record of breaking exclusive news ahead of official announcements, the information holds high credibility.

Backtracking on Previous Statements

Interestingly, Binance had previously listed leveraged tokens from the FTX exchange on its platform. However, due to liquidity issues during a major market drop in March and apparent user unfamiliarity with the mechanism of leveraged tokens, Binance's founder, Changpeng Zhao, announced on March 28 that Binance would delist these tokens to protect investors.

https://twitter.com/cz_binance/status/1243920446250053633

As leveraged tokens garnered significant attention in the market at that time, Binance's sudden delisting sparked community complaints. Nonetheless, Zhao responded to the situation at the time:

"User protection first. Based on the comments in the previous tweets, I expect some complaints. If you don't like our delisting decision, check the prices of these tokens in a month and then tell us if you're still complaining."

If Larry Cermak's information is accurate, Zhao's past statements to the community may seem particularly ironic.

The Block's Friction with Binance

In fact, not all of Larry Cermak's disclosures have been universally accepted. Last November, The Block reported that Binance's Shanghai office had recently been raided by local authorities, claiming that the raid affected many of Binance's executives and up to 100 other employees working at that office.At the time, Binance's founder, Changpeng Zhao, vehemently denied this report and referred to The Block as "FUD Block" on Twitter.

Since then, Zhao's relationship with The Block has deteriorated, leading to the blocking of Larry Cermak's Twitter account. Even though this incident occurred half a year ago, Zhao's tweets from before still reflect his discontent:

"People still doubt The Block's sources, but for some reason, we revealed their three biggest announcements of the year before Binance's own promotion and were not forbidden to report. More exclusive acquisition news is coming soon. But some of you still believe that Binance has no office in Shanghai. (Shaking head)"

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