Due to the continuing situation, Binance announced that it would stop trading numerous trading pairs that contain FTX's FTT. The BUSD/FTT pair will be the only one that is unaffected. The cryptocurrency exchange tweeted the news on Monday.
As you are aware, FTX's native cryptocurrency coin, FTT, was just shut down. The exchange had a reputation for offering trade discounts to token holders. However, since the platform's problems started, the value of the FTT token has plummeted.
The token's futures contracts, margin pairs, and flexible products were all taken off of Binance's list. The notice from the exchange states that this development happened on Monday.
Now, many spot-trading pairs will do the same. On Tuesday, November 15, 2022, Binance will stop trading in token pairs that include the FTT token. Bitcoin, Ethereum, Binance Coin, and Tether are among the FTT pairs.
However, traders will still be able to conduct transactions using the BUSD, Binance's second stablecoin. There are currently no signs that the exchange will stop trading the pair at a later time.
Binance Forbid FTT Shorting
According to the notice, Binance regularly evaluates the assets listed on its site. This will make sure that they adhere to the standards necessary to safeguard users. The company has chosen to withdraw a significant number of FTT trading pairs, according on recent reviews, the message on Twitter continued.
Due to the abandonment of the margin pairings, Binance also ends the ability for users to short FTT. Its issuer's bankruptcy made this unavoidable.
Shortly after its founder and CEO said that the company did not short FTT tokens, the most recent Binance announcement surfaced. Changpeng Zhao, the company's founder and CEO, made this statement in response to a Twitter user's query. He emphasized that after speaking with Sam Bankman-Fried, Binance ceased shorting FTT but still has a significant amount of it in the bag.
In accordance with its own established norm, Binance has decided to keep trading FTT against its own cryptocurrency. It all started with Terra's collapse earlier this year, which eliminated all other UST and LUNA trading pairs save for those using BUSD.
Due to suspicious activity, Binance briefly banned FTT deposits on Sunday. However, it closed its inquiries on Monday and reopened the deposits.