Coinbase Int’l Announces Pre-Launch Market Support
2 min read
Coinbase Int'l Announces Pre-Launch Market Support
Coinbase International is taking a page out of the book of centralized exchanges like Binance, Bybit, Bitget, and OKX by developing a launchpad for emerging cryptocurrency projects. The announcement made by Coinbase developers on June 17 explains that “pre-launch markets” enable users to engage in trading perpetual futures contracts on tokens that have yet to be officially launched. Once these tokens go live on relevant spot exchanges, these futures contracts will convert into standard perpetual contracts.
This new feature is set to cater to both institutional investors via Coinbase International and retail traders through Coinbase Advanced. The initial margin for pre-launch market assets is capped at 50%, allowing for two-times leverage. There’s a notional position limit of $50,000 per token. It’s important to note that these instruments operate differently from traditional standard futures. Specifically, “pre-launch markets” use a 4-hour exponential moving average (EMA) of the instrument’s mark prices for determining the Pre-Launch Index Price.
Developers have issued warnings regarding the heightened risks associated with pre-launch markets, which are more susceptible to lower liquidity, increased volatility, and a greater risk of liquidation. Another layer of risk comes from the fact that these instruments are not covered by the exchange’s Liquidity Support Program, which increases the potential for auto-liquidation.
There’s an inherent risk that the pre-launch tokens may never make it to full listing. Coinbase International staff highlighted this concern, stating that if a token fails to launch, the corresponding pre-launch market would not be able to transition into a standard perpetual futures market. In such a scenario, the market may have to be suspended or even delisted.
Launched in May 2023, Coinbase International serves as the overseas division of the renowned U.S.-based exchange. The platform operates under a class F license from the Bermuda Monetary Authority (BMA), which allows it to offer a variety of financial services to its international clientele.
This strategic move by Coinbase International to introduce pre-launch markets is seen as a way to attract more sophisticated traders looking for new opportunities and higher returns, albeit with increased risks. The introduction of this product follows a broader industry trend aimed at diversifying trading instruments available to users.
By engaging in pre-launch markets, traders can speculate on the future value of new tokens before they hit the mainstream exchanges. While this can potentially yield significant profits, it also comes with the caveat of higher risks that traders have to carefully consider. The emphasis on pre-launch assets being capped and subjected to specific index price mechanisms further outlines Coinbase’s approach to balancing opportunity with caution.
The introduction of pre-launch markets marks an ambitious step for Coinbase International. It also serves as a reminder of the volatile and often unpredictable nature of the cryptocurrency world, where high rewards are frequently accompanied by equally high risks.
Amazing development by Coinbase! This will definitely bring more sophisticated traders to the platform.
Impressed by Coinbase’s innovative approach! Pre-launch markets are just what traders need. 🚀”
Really impressed with Coinbase’s forward-thinking approach. Pre-launch markets will definitely attract a lot of attention. 👏”
I’m extremely disappointed in Coinbase for taking this route. Introducing something this volatile seems irresponsible.
Kudos to Coinbase for this strategic move! This could really shake up the crypto trading landscape. 🌍”
The volatility and risk factors are through the roof. Coinbase should be focusing on minimizing risks, not amplifying them.
Coinbase is playing with fire. These pre-launch markets are way too risky and unstable. Bad, bad move.
Coinbase International just keeps getting better! Pre-launch markets are precisely what’s needed.
This is a terrible idea! Why would Coinbase copy the risky moves from other centralized exchanges? They’re just setting up their users for massive losses.
Coinbase constantly innovating! Pre-launch markets will be a great addition for traders looking to speculate.
Outstanding initiative by Coinbase International! This makes crypto trading even more exciting. 🎢”
This new feature is going to attract so many traders. Coinbase is taking bold steps in the right direction.
A fantastic move by Coinbase International! High risks, but can’t wait to see those high rewards! 🔥🔥🔥”
Lack of liquidity, increased volatility, auto-liquidations… Sounds like Coinbase is setting up a minefield for its users.
This is big news! Coinbase’s pre-launch markets are a brilliant way to speculate on new tokens.
So now we’re supposed to gamble on tokens that might never launch? Really, Coinbase? This is absurd and way too risky.
Absolutely thrilling to see Coinbase International offering such advanced trading options. High risk, high reward!
This just feels like Coinbase is trying to cash in on the hype. It has all the makings of a perfect storm for liquidation and losses. 🚩⚠️
I dont trust this ‘pre-launch markets’ concept at all. Too many uncertainties and risks involved. Coinbase should know better.
Loving Coinbase’s new initiative. The possibilities with pre-launch markets are endless. So thrilled!
Pre-launch markets? More like pre-ripoff markets. This is just asking for people to get liquidated.
This pre-launch market idea is just another way for Coinbase to offload the risk onto its users. Terrible strategy. 👎❌
No thanks, Coinbase. This pre-launch mess is a recipe for disaster. Stick to what’s proven to work.
Brilliant strategy by Coinbase! This new feature is going to revolutionize trading on their platform. 🌍”
Coinbase International is really upping their game with this. Can’t wait to start trading on these pre-launch markets. 🤑”
This move by Coinbase International is brilliant! Can’t wait to see how the pre-launch markets perform.
Major props to Coinbase for introducing such a sophisticated trading tool! High risks but also high returns. 🏆”
Super thrilled about the potential of pre-launch markets. Coinbase International is definitely on my watchlist now. 👀”