Coinbase International, a prominent crypto exchange platform, has announced the opening of its Pre-launch markets trading starting today.
Coinbase Set To Redefine Future Trading Dynamics
This new initiative will allow investors to speculate on the future value of assets before they are officially launched on the spot exchange. Also, it is exclusively open to institutional users who meet the eligibility criteria.
We’re excited to announce support for pre-launch markets on Coinbase International Exchange and Coinbase Advanced. Trade new tokens before they launch and participate in price discovery, all within a trusted and secure platform. pic.twitter.com/rJ3eclyHDC
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) June 17, 2024
Additionally, it can be accessed through Coinbase International for eligible institutional users and retail traders via Coinbase Advanced. This offering excludes users from the U.S., Canada, and the UK.
The offering, as Coinbase revealed, is a way for the platform to expand its model to cater to traders seeking to capitalize on price discrepancies, unlike any other perpetual futures.
The firm said in an informative blog post that once the token officially launches, the pre-launch futures contract will transition into a regular perpetual contract. Furthermore, the firm mentioned that these pre-launch futures use a 4-hour Exponential Moving Average (EMA) to determine the “Pre-Launch Index Price”
It will also emphasize that the markets won’t be part of Coinbase’s Liquidity Support Program (LSP). This makes it riskier with lower liquidity and higher volatility. To manage risk, the pre-launch markets offer a maximum leverage of 2x and a position limit of $50,000 notional value compared to 10x leverage in regular perpetual futures.
This development coincides with the recent launch of the perpetual futures trading for Floki on Coinbase.
Coinbase Routing The Market
The American crypto exchange has been making notable progress in the cryptocurrency industry lately. Its advancements reflect its commitment to innovation and leadership in the crypto space.
The exchange has been expanding its services, enhancing security measures, and introducing new features to cater to the growing demands of the market.
In early May, the exchange was sued by its users for selling digital currencies as investment contracts. In its defense, it argued that selling secondary crypto assets shouldn’t be regulated by securities laws.
Amidst the legal battle, the exchange reported a strong revenue rebound in the first quarter of 2024 which shows its resilience in the face of challenges.
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