Coinbase now allows you to bet on new tokens that have not yet reached the market – DiarioBitcoin

Operations will be carried out through a pre-launch platform for new tokens, where perpetual futures contracts for promising assets can be traded. It is currently not available to users in the US, UK, or Canada.

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• Coinbase enables perpetual contracts for tokens that have not yet reached the market
• Operations will be carried out through its new pre-launch platform
• These new contracts are subject to certain conditions and clauses
• Currently not available for users in the US, UK or Canada

The US-based international exchange, Coinbase, indicated that it will now have a pre-launch platform for new tokens, where users will be able to negotiate investment contracts before they reach the market.

Market for the pre-launch of new tokens

The announcement came in a post published today by Coinbase, where the company indicated that the function will be available to institutional investors on its international platform, as well as to retailers operating through its Advanced division. The measure constitutes a clear attempt to compete in the sector with other recognized platforms, such as Binance, Bybit, Bitget and other exchanges.

In this regard, the team Coinbase wrote:

Pre-launch markets allow users to trade perpetual futures contracts on tokens that have not yet been launched. When the underlying token is launched on the corresponding spot exchanges, the instrument becomes a standard perpetual contract. Pre-launch markets on Coinbase allow users to participate in price discovery for upcoming projects on a secure and trusted platform.

Regarding operations, all assets that are part of this launch market have an initial margin limit of 50%, or 2x leverage, as well as a position limit equivalent to USD $50,000 per token.

As it is a market with particular conditions, Coinbase warned that this “differs significantly from the standard perpetual futures market,” Therefore, it is important that people do their due research and refrain from participating if they are not familiar with these types of operations.

Pre-launch markets differ significantly from standard perpetual futures markets as they involve unique considerations and pose elevated risks. It is essential to exercise caution and refrain from trading contracts that you are not familiar with or do not fully understand the associated risks.

Those who want to participate in this new market must have the most recent version of the exchange’s products. At the moment it is not available for residents of the US, United Kingdom or Canada, and it is recommended that interested parties verify if their jurisdiction presents any type of inconvenience for this type of operations.

Coinbase expands its products and services

The announcement of the pre-launch market further deepens the expansion plans of Coinbase, especially now as the platform explores business opportunities outside the US.

Recently, the exchange acquired a license to operate as a restricted distributor in Canada, a measure that further consolidates its services in the North American country, considered by several companies as one of the most demanding legislations today.

Regarding products, Coinbase Derivatives opened support for operations with retail gold and oil futures contracts, assets available along with derivatives of BTC, ETH, BCH, LTC and DOGE.

Back in the US, the exchange is involved in a tense legal battle with the Securities and Exchange Commission (SEC) since in addition to facing a lawsuit for the alleged violation of current laws, he also took the agency to court to demand greater regulatory clarity.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.