Binance customers who lost big betting on the cryptocurrency exchange’s leveraged tokens will likely never be made whole, but their tales of woe should serve as a warning to others to get out while there’s still time.
In a YouTube video released this week, TechLead (aka Patrick Shyu) addressed the great digital currency crash of May 19, focusing on the major losses experienced by individuals who’d gotten into bed with Binance Leveraged Tokens (BLVT), which in Binance’s own words are “essentially a tokenized version of leveraged futures positions.”
The 20 BLVT listed on Binance aim to generate leveraged gains in a variable range of 1.25x to 4x, depending on how their corresponding token performs. So BTCUP is supposed to rise in tandem with the price of BTC, while BTCDOWN rises when BTC falls. Crucially, the BLVT only exist on Binance, meaning users cannot withdraw the tokens to their own wallets, nor are BLVT issued on-chain.