SAN FRANCISCO, Tuesday, June 25, 2024 – Leading cryptocurrency exchange Coinbase announced today the launch of a new platform for trading pre-launch token options.1
This feature, available on Coinbase International and Coinbase Advanced, allows users to speculate on the value of upcoming digital assets before they officially launch on the market.
Eligible users can participate in “pre-launch markets” by trading perpetual futures contracts tied to these unlaunched tokens. Once the underlying token debuts on a spot exchange, these contracts will automatically convert into standard perpetual futures contracts.
Coinbase said:
“You can now trade EIGEN-PERP with up to 2x leverage. EIGEN opens with a price of $7.307 and an Implied FDV of $12.2 B.” EigenLayer enables ETH holders to re-stake their tokens for use as “cryptoeconomic security” for protocols other than “Ethereum, in return for protocol fees and rewards. An example: if you staked $100 of ETH for 10 years at a rate of 5%, you would have $127. However, if you restaked the original ETH just one time for a total of $100 staked across 2 protocols for 10 years at a rate of 5%, you would have $154,” a report on Yahoo Finance said.1
The pre-launch trading feature on Coinbase is a novel addition. It permits users to trade perpetual futures contracts on tokens that are yet to be launched. Once the underlying token is launched on relevant spot exchanges, the instrument transitions to a standard perpetual contract. Its accepted collaterals were listed as USDC, BTC, and ETH, with a minimum order size of 10 USDC.
However, Coinbase has also issued a warning to users about the increased risks associated with trading pre-launch digital assets. The exchange emphasized the need for users to fully understand the risks involved before trading contracts.
- finance.yahoo.com: https://finance.yahoo.com/news/coinbase-lists-pre-launch-ethereum-163016493.html[↩][↩]
