Binance is regarded as one of the most popular cryptocurrency exchanges on the planet boasting the biggest customer base. The Changpeng Zhao led cryptocurrency exchange made waves with multiple developments during the pandemic with Thursday bringing about another change.
Just recently, Binance announced that they would be suspending all trade-related ETHDOWN tokens on July 8. All the existing trades will be canceled when the update occurs on the 9th. According to sources within Binance, ETHDOWN will undergo a 100,000-for-1 reverse token split. The exchange has given itself a day for the changes to take place so that customers do not face any difficulties during trading.
The latest Binance release explained the process for the update as well as steps that holders can take to utilize the implementation. Binance continued:
“It is strongly recommended for ETHDOWN token holders to re-assess their holding risk before the start of the reverse token split process to mitigate against the price fluctuations that may occur during the reverse token split process. Users are advised to trade or redeem their ETHDOWN tokens into USDT before the start of the reverse token split process.”
Binance added that users will have a 15-minute wait window when the token split is complete and is transferred back. The onus will be on Binance to take a snapshot of ETHDOWN balances in users’ accounts and begin the reverse token split of ETHDOWN tokens at a ratio of 100,000 ETHDOWN. Binance’s update comes at a time when the UK’s FCA ordered the company to halt all trading activities in Britain.
The FCA had ordered the exchange to first comply with its internal regulations back in 2020 after which the latest action was taken. Following this criteria implementation, almost 90 percent of potential registrants dropped their application processes.