Facts about leveraged tokens: Facts you need to know about leveraged tokens before opening a position
If you consider opening a 3x short or 3x short position with any of leveraged tokens, you had better take a look at these crucial facts about BULL and BEAR tokens. Here are important facts that both Binance and the issuer FTX dont want you to know about.
3x short Bear token wont reach the price at the moment you opened the position even if the base currency falls to the previous price when you opened the position.
We tested it. Here is what happened :
We placed an order on ETHBEAR at 20 USD while the Ethereum price was 250 USD. Ethereum rised to 285 USD and therefore ETHBEAR fell to 11 USD. So far it seems quite normal. However the mystery that binance and FTX keep from investors came out when Ethereum price fell and ETHBEAR increased. ETHBEAR price hardly increased to 16.8 USD despite Ethereum price going down to 237 USD, 13 USD below the price we placed ETHBEAR position.
Both Binance and FTX keep this crucial secret from investors which is primarily unethical and of course a crime. Can you imagine a newbie or an unexperienced investor going all in these leveraged tokens listed amoung other standart tokens in the spot market ? The functioning mechanism of these leveraged tokens is way different than other spot market tokens. So why do they hide key facts about leveraged tokens ?