Fellow Binancians,
To provide a better trading experience for our users, XLMDOWN will undergo a 100,000-for-1 reverse token split, starting at 2021-08-26 03:00 AM (UTC). The reverse token split process will take approximately 24 hours, with the following timeline:
- At 2021-08-26 03:00 AM (UTC), we will suspend trading, subscription, and redemption of XLMDOWN tokens. All existing trade orders will be canceled. We will then take a snapshot of XLMDOWN balances in users’ accounts and begin the reverse token split of XLMDOWN tokens at a ratio of 100,000 XLMDOWN (before the reverse split) = 1 XLMDOWN (after the reverse split).
- At 2021-08-27 03:00 AM (UTC), new XLMDOWN balances will be updated, and we will open trading for XLMDOWN/USDT. Subscription and redemption functions for XLMDOWN tokens will also be opened at this time.
About Reverse Token Split
A reverse token split is a process that consolidates the existing number of issued tokens into a smaller number of proportionally more valuable tokens.
Based on the ratio of 100,000 XLMDOWN (before the reverse split) = 1 XLMDOWN (after the reverse split), if the total number of issued XLMDOWN tokens is 100 billion tokens before the reverse token split, the total number of issued XLMDOWN tokens after the reverse token split will be 1 million tokens. If a user holds 1,000,000 XLMDOWN tokens before a 100,000-for-1 reverse token split, the user would end up holding 10 XLMDOWN tokens after the reverse token split.
Important Notes:
- During this 24-hour reverse token split process, any changes in net asset value (NAV) of tokens might be reflected on XLMDOWN’s NAV K-line graph. Please be noted that the NAV of XLMDOWN might be incorrect due to the reverse token split process.
- It is strongly recommended for XLMDOWN 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 XLMDOWN tokens into USDT before the start of the reverse token split process. For more information, please refer to this guide: About Binance Leveraged Tokens.
- If users are holding XLMDOWN tokens after 2021-08-26 03:00 AM (UTC), Binance will consolidate these tokens at a ratio of 100,000 XLMDOWN (before the reverse split) = 1 XLMDOWN (after the reverse split) and update the XLMDOWN tokens balances at 2021-08-27 03:00 AM (UTC) after the reverse token split is complete. Due to unit limitations, the new XLMDOWN balances will be updated up to 8 decimal places only.
- Users will have a 15-minute window after the reverse token split is complete to subscribe or redeem before trading resumes.
- The 24-hour time is based on our best estimates and may vary. We will post a further announcement to inform users when trading, subscription, and redemption will resume after the reverse token split is complete.
Risk Warning: Leveraged Tokens are designed for short term bets on market movement, with a preference toward momentum. Long term holding of Binance Leveraged Tokens (BLVT) is risky, as the token has some built-in decay in the absence of momentum movements in favor of the position. Note that BLVT is NOT a replacement for a margin leveraged product, and does not behave the same way. The information here should not be regarded as financial or investment advice from Binance. All trading strategies are used at your discretion and your own risk. Binance will not be liable to you for any loss that might arise from your use of Leveraged Tokens. To learn more about how to protect yourself, visit our Responsible Trading resource page.
Thanks for your support!
Binance Team
2021-08-19
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Binance reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.