BitMEX has introduced a new basket index product that allows users to wager on popular meme coins. According to a Thursday announcement, this offering has commenced trading at 04:00 UTC on July 4.
The exchange presumably devised this offering in response to the prevalence of meme coins. Meme coins are digital currencies that are inspired by humorous internet parodies and can also be developed to ridicule the crypto industry.
Social media played a significant role in the popularity of these currencies, as their creators generated enthusiasm in order to increase their prices. Even renowned figures such as Elon Musk have endorsed them, particularly Dogecoin, which has in turn increased their popularity.
The container is indicative of BitMEX’s ongoing initiative to broaden its selection of trading products. This initiative is in accordance with BitMEX Options and its Bitcoin perpetual swap XBTUSD, which provides a 250x leverage.
“Over the past year, meme coins have experienced extraordinary development, and we have observed a growing desire among BitMEX users to participate in the growth,” stated Stephan Lutz, CEO of BitMEX. He further stated that the abundance of these items can be overwhelming for merchants, resulting in a challenge in establishing a solid foundation.
According to BitMEX, the new index functions similarly to the S&P 500 for meme currencies, consolidating them to facilitate trading. Consolidating multiple meme currencies into a singular index also generates liquidity. This, in turn, facilitates more advantageous trade executions.
Additionally, it provides a less hazardous opportunity for retail traders, particularly those who are apprehensive about volatility. According to the exchange, it is a linear perpetual swap that is USDT-margined and can accommodate up to 25x leverage.
Additionally, the BitMEX Meme Basket Index is calculated by averaging the prices of the top 10 meme coins, which are then weighted according to their market capitalization. Consistency with the most successful meme coins necessitates monthly adjustments to their constituents. In order to guarantee transparency, modifications to the index are disclosed beforehand.
In honor of the contract’s launch, BitMEX is awarding traders who utilize it a prize pool of up to 10,000 USDT.
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