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Binance Prohibits Employees Futures Trading: Strategy to Enhance Transparency

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In a recent tweet, Binance CEO Changpeng Zhao (CZ) has made a significant announcement that sheds light on the internal workings of one of the world’s largest cryptocurrency exchanges. CZ stated that the firm’s employees, including himself, are now prohibited from engaging in futures trading. This move, although seemingly restrictive, is rooted in the company’s commitment to fostering trust, transparency, and integrity within the crypto industry.

The exchange, renowned for its innovative trading features and wide range of cryptocurrency offerings, has implemented a series of internal rules that extend beyond this prohibition. According to these rules, all the firm’s employees are required to hold their positions for a mandatory 90-day period before they are eligible to participate in any form of trading. This stringent policy aims to prevent any potential conflict of interest and maintain the focus on Binance’s core mission – providing a fair and secure trading platform for its users.

One crucial aspect of the exchange’s internal policies is the vigilance exercised by the internal security team. This team is tasked with monitoring the trading activities of employees across various platforms, ensuring that the zero-tolerance policy is upheld. Any breach of these regulations, no matter how small, results in immediate termination. This robust approach reflects Binance’s uncompromising stance on maintaining a level playing field within the cryptocurrency ecosystem, eradicating even the slightest possibility of insider trading.

Binance’s Global Standards and Exemplary Measures

Binance’s decision to halt employee futures trading carries strategic implications for the cryptocurrency industry as a whole. By implementing such policies, Binance not only aligns itself with global regulatory standards but also sets a benchmark for other exchanges to follow. In a sector often criticized for its lack of transparency and susceptibility to market manipulation, such actions send a clear message: transparency and fair play are paramount.

The move could also contribute to the wider acceptance of cryptocurrencies in traditional financial circles. Institutional investors and regulatory bodies have long expressed concerns about the potential for market manipulation and lack of oversight in the cryptocurrency space. Binance’s proactive measures address these concerns head-on, positioning the exchange as a responsible and reliable player.

In conclusion, Binance’s CEO CZ’s announcement regarding the prohibition of futures trading by employees and the implementation of strict trading rules is a pivotal moment for the cryptocurrency industry. By prioritizing transparency, integrity, and accountability, Binance is taking a significant step towards reshaping the perception of the entire sector.

As the exchange sets new standards for ethical behavior and regulatory compliance, it invites others in the industry to reevaluate their practices. In an evolving landscape, Binance’s commitment to ethical conduct not only safeguards its reputation but also reinforces its role as a vanguard for positive change within the crypto realm.

Binance Futures Takes Down LUNA Perpetual Contracts

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Binance continues to deactivate connected trading services as the Terra network’s coins Luna (LUNA) and TerraUSD (UST) collapse.

Binance Futures, the firm’s derivatives arm, has delisted coin-margined LUNA perpetual contracts, the company revealed on Thursday. “To avoid automatic settlement, users are encouraged to cancel any open positions prior to the delisting time,” the site said in a statement.

Binance Futures has also begun to settle contracts automatically, lowering leverage tiers and updating margin tiers for coin-margined LUNA perpetual contracts.

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Binance Futures Takes Down LUNA Perpetual Contracts 2

Binance halting LUNA

As a result, the 8x leverage tier has replaced the 21-25x leverage tier as the largest leverage tier accessible on Binance for LUNA perpetual contracts. According to the new statistics, 11-20x leverage is lowered to 7x, and 6-10x leverage is replaced by a 6x leverage tier.

Existing roles that were created before the change would not be impacted, according to the notice.

Binance also stated that it “reserves the right to adjust the maximum leverage and margin tiers for USDT-margined LUNA perpetual contracts at any time without warning.”

The new Binance Futures trading updates come after Binance stopped LUNA and UST withdrawals on Tuesday due to a huge selloff of tokens on the Terra network, with the UST stablecoin losing its dollar peg and plummeting below $0.67.

The UST stablecoin, which was supposed to maintain its 1:1 peg with the US dollar, fell as low as $0.30 on May 11, while its sister token LUNA lost more than 99 percent of its value at the time of writing.

The events sent shockwaves across the cryptocurrency industry, with the overall market capitalization plunging by nearly $600 billion.

To preserve the stablecoin’s 1:1 ratio, UST is an algorithmic stablecoin based on a system of swaps between LUNA and UST as well as LUNA token burning.

Unlike the UST stablecoin, significant stablecoins like as Tether (USDT) and USD Coin (USDC) are fiat-backed stablecoins, meaning that their value is maintained by equal currency reserves.


Binance Commences Trading For XRP And ETC Coin-Margined Perpetual Contracts

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Malta-based exchange of crypto-currency, Binance was launched in 2017 only three years ago. Despite a little late entering the crypto market, the exchange was quick enough to establish its position in the crypto-verse. Binance is currently the largest cryptocurrency exchange in the world. The exchange never fails to roll out new updates for its users and the platform. Despite being subject to several scandals, Binance continued to retain its position on the top. Earlier today, the exchange launched coin-margined perpetual contracts for two popular coins.

XRP And ETC Join The List

At 7:00 AM [UTC], Binance commenced trading services for coin-margined perpetual contracts for the coins XRP and Ethereum Classic [ETC]. Users would be allowed to leverage the coins within the range of 1-75x. The aforementioned coins would be paired against the United States Dollar [USD]. Binance made the announcement via a blog post and suggested,

“The XRPUSD and ETCUSD coin-margined perpetual contracts are futures contracts that use base assets i.e. XRP and ETC as collaterals.”

The Changpeng Zhao-led exchange recently rolled out the coin-margined perpetual contracts feature along with USDT-margined futures. Back in August, CEO CZ revealed that the volume of both Coin-margined, as well as USDT-margined futures, reportedly went up to a high of $13 billion.

While XRP and ETC are the latest additions to the list, Bitcoin [BTC], Ether [ETH], Chainlink [LINK], Binance Coin [BNB], Tron [TRX], Cardano [ADA] along with Polkadot [DOT] have been part of coin-margined perpetual futures. Even though the “Order Price Cap Ratio” for every coin is 5% the leverage for Bitcoin ranges from 1x to 125x while the leverage of altcoins is limited from 1x to 75x.

The crypto community seemed to be happy with the exchange’s latest additions, however, some of them pointed out that rolling out ETC futures would be a mistake citing the series of 51% attacks the network has endured in the past month. Twitter user, @simonadams19821 said,

“Are you seriously launching etc futures with the network constantly being attacked wow talk about irresponsible @cz_binance I urge you to reconsider this.”

Additionally, the price of Ethereum Classic [ETC] seems to have taken a hit post the 51% attacks. During the time of writing, the altcoin was trading at a low of $5.07 with a 1.39% plummet in its price over the last 24-hours.

Binance Futures Launches YFI/USDT Perpetual Contract as DeFi Demand Surges

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DeFi (Decentralized finance) is currently one of the hottest corners of the crypto industry this year and, as a result of the boom, many project tokens have shown incredible price surges. One of the prominent tokens is Yearn. Finance ‘s native YFI, which has gained significant traction over the last few weeks.

DeFi, the big hype

In a bid to cash in on the mania, several centralized platforms have now jumped on the DeFi bandwagon.

In the latest development, one of the world’s largest centralized cryptocurrency exchange, Binance announced the launch of the YFI/USDT perpetual contract on its Futures platform wherein the users will be able to choose between 1-50x leverage.

The YFI/USDT perpetual contract is a USDT-margined futures contract that uses USDT as collateral. According to the official blog post, the contract will be made available to users from 31st August 7:00 AM [UTC].

This news follows Binance‘s announcement of offering ‘DeFi Index Perpetual Contracts’ to cater to the huge customer demand to get exposure to a broad base of DeFi products.

yearnfinance charts

YFI’s meteoric rise

Meanwhile, in a little over a month, YFI has soared by a staggering 4008% since it was created $764.42 in July to the press time price at $31,682. Following the path of Bitcoin, the creators of the project have limited the supply of the governance token to 30,000 YFI coins. This could be an important contributing factor to the rapid surge in its price.

This new rally was also speculated to be triggered after, one of the largest DeFi protocol, Aave announced the listing the token. This was a significant development for the YFI ecosystem primarily because Aave has successfully outpaced the likes of Maker, Curve Protocol in the race for the first place in terms of TVL.

As previously reported, yet another catalyst for the token’s upward momentum was directed towards a  potential collaboration between the crypto derivative platform FTX and Yearn.Finance.

Besides, the protocol also recently announced the launch of ‘yinsure.finance’ which is essentially a prototype for a new tokenized insurance, the first of its kind in the DeFi ecosystem.