Crypto exchange Binance said it will perform reverse splits on certain trading tokens linked to litecoin and uniswap.
- UNIDOWN and LTCDOWN – which generate leveraged gains when the underlying crypto assets decrease in price – will undergo a 100,000:1 reverse token split, Binance announced Monday.
- This process consolidates existing tokens into a smaller number with higher value.
- Users with 1 million of the tokens before the split will have 10 after, users with 1 billion tokens before the split will have 10,000 after and so on.
- Binance will suspend trading in the tokens at 3:00 a.m. UTC Aug. 17, taking a snapshot of the balance in users' accounts, then update them 24 hours later before resuming trading.
- The company advised users to redeem their existing tokens into USDT before the start of the split to protect against fluctuations in price during the process.
Read more: Binance to Wind Down Hong Kong Derivatives Trading in Switch to ‘Proactive’ Compliance Stance
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