Crypto Exchanges Binance And FTX Reduce Max Leverage From 100x To 20x

    What Happened: Major crypto exchanges Binance and FTX moved to abandon the high levels of leverage trading offered on their platforms.

    In a series of tweets on Sunday, FTX CEO Sam Bankman-Fried announced that it was time to move on from leverage trading.

    “Today, we’re removing high leverage from FTX. The greatest allowable will be 20x,” said Bankman-Fried.

    The FTX CEO explained that the move came after “lots of back and forth”, but it would be the first derivatives exchange to take the first step towards the direction the crypto industry is headed.

    Not long after FTX’s announcement, Binance’s CEO Changpeng Zhao declared that Binance too would be limiting the maximum amount of leverage allowed on its platform.

    Binance reportedly began limiting new users to 20x leverage on July 19, without disclosing any official announcements at the time.

    “We didn’t want to make this a thingy,” said Zhao in his Twitter announcement earlier today, while confirming that the changes to leverage limits will be applied to existing users over the next few weeks.

    Read also: Decentralized Exchange Uniswap Faces Community Backlash After Delisting 100 Tokens

    Until today, both Binance and FTX offered 100x leverage to crypto derivatives traders, making the newly imposed limits a drastic change for some market participants.

    However, with regulators turning up the heat on crypto exchanges and the massive liquidation risks imposed by the high levels of leverage, many viewed the move as a step in the right direction.

    Price Action: At press time, Bitcoin (CRYPTO: BTC) was trading at $37,337 after gaining more than 5.39% overnight.

    The leading digital asset reclaimed the 50-day moving average after adding $4,400 to its price over the past 24-hours.

    Related articles



    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Atlantis Exchange Received 30,000,000 Advanced Bitcoin as Liquidity

    SEATTLE, WA, May 20, 2022 /24-7PressRelease/ — Atlantis Exchange is pleased to announce that a deposit of 30,000,000 Advanced Bitcoin (“aBTC”), a green cryptocurrency...

    These indicators show how the equities sell-off is influencing crypto prices to fall down

    Cryptocurrencies experienced on May 10 a large market crash, losing over 10% in a single day of most of the coins. This is the...

    Xendit Raises $300M to Grow Payments Platform

    Southeast Asia payments platform Xendit closed a $300 million Series D funding round that brings its total investment capital since 2015 to $538 million,...

    Top Cryptocurrency Prices Today, May 20: After crypto crash, Bitcoin, ETH, Solana, ADA, Polkadot, Matic rise upto 6%

    Top Cryptocurrencies of the World Prices Today in India (May 20, 2022): The global crypto market cap recovered 2.87% in the last 24 hours...

    Ethereum to Merge in August as Final Testing Begins

    The Merge is a milestone upgrade that transitions the Ethereum network consensus mechanism from proof-of-work mining to proof-of-stake (PoS). It is a significant step...


    Subscribe to stay updated.