On August 29, 2024, Binance, the world’s largest crypto exchange, announced that it would support Polygon’s planned token migration from MATIC to POL. It said it would be suspending all MATIC deposits and withdrawals on September 9, 2024. This is part of an upgrade that Polygon is making to its ecosystem, with POL expected to play an integral role in its newly devised Polygon AggLayer.
Automatic Token Migration on Binance
As for MATIC holders on Binance, they need not concern themselves with the need to take manual action to swap their tokens. This is because Binance has assured them of an automatic migration of MATIC to POL at a ratio of 1:1. Before this swap, though, Binance will effect the following important steps:
Binance will delist all MATIC trading pairs and suspend any currently pending spot trading orders on September 10, 2024. It particularly refers to the following trading pairs: MATIC/BNB, MATIC/BRL, MATIC/BTC, MATIC/ETH, MATIC/EUR, MATIC/FDUSD, MATIC/JPY, MATIC/TRY, MATIC/USDC, and MATIC/USDT.
Trading of the new POL pairs will open on September 13, 2024. Previously available MATIC pairs will also be made available for POL to ensure a smooth transition and not affect the traders very much.
Also, on September 9, 2024, all MATIC futures positions will be officially closed pending automatic settlement, after which the contract will be delisted. Binance encourages all users to close their positions before this date to avoid surprise settlements. The exchange further said it would end isolated margin borrowing of MATIC by September 2 and would remove all its MATIC pairs from Cross and Isolated Margin by September 5.
Preparations by Polygon Foundation
In preparation for the swap, the Polygon Foundation has transferred 10 million MATIC tokens, worth $4.63 million to Binance over the past 24 hours. This is part of a string of MATIC transfers to Binance that began in June, accumulating up to 50 million tokens worth $24.72 million.
While the exact motive behind these heavy transfers remains unknown, they have coincided with the steep decline in the price of MATIC, which fell 4% today and is down 17% on the week. It is down 57% year-to-date, making the upcoming token upgrade one of the most highly-anticipated events among holders.
This is expected to change once POL takes over, however, by many in the community. According to Polygon Labs, POL is a hyper-productive token that will eventually power chains in the entire Polygon network as it grows.
Watch Out for Scams
Of course, with any major transition in the crypto space, come the bad actors that look to take advantage of the situation. Holders should be really attentive to possible scams during the swap process. Recently, the Polygon Discord server was compromised and scammers posted phishing links intended to steal users’ funds. Always check you are interacting with the official channels and avoid suspicious links.
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Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Cryptocurrency investments involve significant risk, and you should carefully consider your investment objectives, level of experience, and risk appetite before participating in the token swap or any related activities. Binance’s automatic token migration process is designed to simplify the transition, but users are encouraged to stay informed and exercise caution, especially regarding potential scams. Always verify information through official channels and consult with a financial advisor if needed.
