- Coinbase (NASDAQ:COIN) launches pre-launch markets where investors can trade unreleased tokens (high risk/reward).
- Coinbase blog notes that it is to speculate on future value and there is potential for profit before official launch.
- PreLaunch trading has increased volatility & delisting risk
Cryptocurrency exchange Coinbase is venturing into a novel trading arena with the launch of pre-launch markets, enabling users to speculate on the future value of tokens before they are officially released.
This announcement, shared by popular crypto commentator MartyMusic, has ignited both excitement and concerns within the crypto community.
Coinbase announce pre-launch markets on @coinbase International Exchange and Coinbase Advanced to allow users to trade perpetual futures contracts on tokens that have not launched yet: https://t.co/8NgIvMWwws pic.twitter.com/1iKo8AUjjy— MartyParty (@martypartymusic) June 17, 2024
Pre-launch markets allow users to trade perpetual futures contracts tied to the anticipated value of upcoming cryptocurrencies. These contracts will convert to standard perpetual futures contracts once the underlying token launches on a designated exchange.
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