Coinbase Rolls Out Pre-Launch Crypto Markets for Global Traders

Coinbase Introduces Pre-Launch Markets:

• Coinbase has launched a new trading feature on its international and advanced platforms allowing traders to engage in markets for cryptocurrencies before they are available on spot exchanges.
• This service, called 'pre-launch markets,' enables both institutional and retail traders to trade perpetual futures contracts on upcoming tokens, offering a unique speculation opportunity prior to their official launch.

Accessible Exclusively to Non-U.S. Users:

• The pre-launch markets service is tailored for users outside the U.S., Canada, and the UK, catering to eligible institutional clients through Coinbase International and retail traders via Coinbase Advanced.

Enhanced Safety Measures and Trading Conditions:

• Coinbase has implemented safety measures for these high-risk markets, limiting leverage to 2x with a $50,000 position cap to mitigate risks associated with volatility and liquidity issues.
• These markets are excluded from Coinbase’s Liquidity Support Program, making them prone to unique risks like higher volatility and increased liquidation risks.

Price Calculation and Stability:

• Pre-launch markets use a 4-hour exponential moving cost average of the token’s mark prices to calculate the Pre-Launch Index Price, stabilizing price volatility and providing a clearer picture of market expectations.

Positive Development for Crypto Traders:

• Coinbase's introduction of pre-launch markets trading offers expanded opportunities for traders in the cryptocurrency space, responding to the demand for more sophisticated crypto investment tools.