Innovative Trading Platforms to Include Unreleased Crypto Tokens
Coinbase has announced the introduction of pre-launch markets on its International Exchange and Coinbase Advanced platforms, allowing eligible retail and institutional users to trade perpetual futures contracts on unreleased tokens. This move aims to facilitate price discovery for upcoming crypto projects.
Access to Pre-Launch Markets
Eligible institutional users can access these pre-launch markets through the Coinbase International Exchange, while retail traders can do so via Coinbase Advanced. These platforms will enable users to open long or short positions on tokens that have not yet been launched, with up to 2x leverage. Once the underlying tokens become available on relevant spot exchanges, the contracts will automatically convert into standard perpetual futures contracts. However, these pre-launch markets will not be available to users in the U.S., U.K., and Canada.
Unique Features and Elevated Risks
The pre-launch markets will operate differently from standard perpetual futures markets, incorporating a unique index price mechanism and conversion risks. Additionally, these markets come with elevated risks such as lower liquidity, higher volatility, and increased liquidation risk, making them more susceptible to fluctuations and potential losses compared to standard perpetual futures markets.
Partnership with Fireblocks Network
Coinbase International Exchange has previously partnered with Fireblocks Network to enhance its offerings of perpetual futures and spot trading features for institutional and retail clients in select regions. Fireblocks, a blockchain security service provider, specializes in the secure transfer, storage, and issuance of digital assets. This partnership will enable Coinbase International Exchange customers to securely connect their accounts using Fireblocks’ network.
Commitment to Robust Trading Infrastructure
Usman Naeem, CEO of Coinbase International Exchange, emphasized the significance of this collaboration, stating, “As we continue to expand our offerings for institutional and retail clients, this collaboration underscores our commitment to providing a robust and reliable trading infrastructure for our global clientele.”
Expanding Derivative Offerings
The international division of Coinbase enables institutional investors outside the U.S. to trade perpetual cryptocurrency futures. In 2023, Coinbase introduced derivative offerings to clients, further broadening its range of services in the global crypto market.
Conclusion
With the launch of pre-launch markets and strategic partnerships, Coinbase is set to provide innovative trading opportunities and robust infrastructure for its global users. This initiative marks a significant step in facilitating price discovery for upcoming crypto projects and expanding the reach of perpetual futures trading.
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