Today there's lot of sketchy things going on with Binance Leverage Token, including extreme movement of leverages, hidden leverage ramp up during clear downtrend, and more.
- There's extreme rebalancing causing leverage to go beyond the intended leverage, for example SUSHIUP up to x50 despite being advertised as 1.25x - 4x leverage. 3. Some more example of extreme leverage adjustment. SUSHIDOWN x5+ , 1INCHUP x200+ leverage making it completely dies , BCHUP x19+. There's a lot more of these that I haven't posted. These issue happened in the past and yet they are not fixed, now this time it happened on way larger scale.
- Binance ramped up ETHUP leverage from x2 to x3.7+ "hiddenly" while it's obvious downtrend causing major lose to practically anyone holding it then adjust leverage to lowest x1.25 while ETH is recovering.
Here's some proof in rebalancing data after the bottom and onto recovery it showed that the previous leverage was 3.749. As a result the drop has decrease ETHUP NAV value by 77.15% way more than ETHBULL of FTX which has x3 leverage which goes down by roughly 60%.
You may think that x3.7 leverage is normal and one must accept the leverage adjustment from Binance, But today the historical leverage chart of ETHUP is shown to not be anymore than x3 Even right on 20:00 (GMT+7) before extreme price drop during 20:00 to 20:10 (GMT+7) . This could only mean either Binance ramp up leverage to x3+ while the price is clearly falling which is false advertisement considering they claim that varying leverage is to maximize gain when price goes up and minimize risk of liquidation while price goes down
There could be more similar action like this in many other leverage token (1INCH is clear one of them where it goes down 95%) but I've not got enough time to gather more evidence today, this is really shady and shall not be tolerated. It's odd they didn't even suspend certain tokens trading such as ETH BNB and BTC leverage tokens.
- Some token that has not been severely affected by leverage overflow is suspended for no reason, such as ADAUP whose leverage completely moving normally today and its NAV is recovering normally locking in any stop loss or profit opportunities.
Binance really needs to come out and do open announcement on this, and people definitely deserve compensations like they did with SXPDOWN token back awhile ago
EDIT: Formatting
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