Coinbase Launches Pre-Launch Crypto Futures Market

Coinbase Launches Pre-Launch Crypto Futures Market

Coinbase Launches Pre-Launch Crypto Futures Market

This move follows the footsteps of other centralized exchanges.

Binance, Bybit, Bitget, and OKX have established similar launchpads for emerging crypto projects.

Emulating Centralized Exchange Launchpads

The pre-launch market on Coinbase International enables users to engage in perpetual futures contracts for tokens before they officially debut on spot exchanges. According to Coinbase’s announcement on June 17th, these contracts seamlessly convert into standard perpetual contracts. This happens once the underlying token launches on applicable spot markets.

Institutional investors will access this feature via Coinbase International, while retail traders can utilize it through Coinbase Advanced. Notably, pre-launch market assets are subject to initial margin caps of 50%, equating to a maximum leverage of 2x. There is also a per-token notional position limit set at $50,000.

Source: X
More About Coinbase’s Pre-Launch Crypto Futures Market
Despite the opportunities presented, Coinbase has cautioned users about the inherent risks associated with pre-launch markets. These include lower liquidity levels, heightened volatility, and increased risk of liquidation due to market fluctuations.
Furthermore, without support from Coinbase’s Liquidity Support Program, pre-launch instruments face increased auto-liquidation risks in volatile markets. Coinbase’s entry into pre-launch markets caters to early-stage crypto investment demand while emphasizing risk transparency.


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The post Coinbase Launches Pre-Launch Crypto Futures Market appeared first on Altcoin Buzz.


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June 18, 2024 at 08:45AM

June 18, 2024 at 08:50AM
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