Coinbase will now provide pre-launch markets on its International Exchange and Coinbase Advanced marketplaces

The pre-launch markets will enable eligible retail users to trade perpetual futures contracts on unreleased tokens, thereby participating in price discovery for forthcoming projects, as per an official announcement by Coinbase.

Retail traders can access this new feature through Coinbase Advanced, while eligible institutional users can do so through Coinbase International Exchange. Traders who have not yet launched tokens have the ability to establish long or short positions with a leverage of up to 2x.

The contracts will automatically transition into conventional perpetual futures contracts once the underlying token becomes available on pertinent spot exchanges. The pre-launch markets will be accessible in eligible regions, with the exception of the United States, the United Kingdom, and Canada.

According to the announcement, pre-launch markets would operate differently than standard perpetual futures markets, characterized by a distinctive index price mechanism and conversion risks.

Furthermore, pre-launch markets are associated with elevated risks, such as increased volatility, reduced liquidity, and increased liquidation risk. In comparison to conventional perpetual futures markets, these variables may render them more susceptible to fluctuations and potential losses.

Coinbase International Exchange has previously collaborated with Fireblocks Network to provide institutional and retail clients in specific regions with spot trading and perpetual futures features.

Fireblocks, a blockchain security service provider that specializes in the secure transmission, storage, and issuance of digital assets, will allow Coinbase International Exchange customers to connect their accounts via its network.

Usman Naeem, CEO of Coinbase International Exchange, stated, “This collaboration serves as a testament to our dedication to establishing a dependable and sturdy trading infrastructure for our global clientele, as we continue to broaden our services for institutional and retail clients.”

In 2023, the international division introduced derivative offerings to clients, which allow institutional investors outside the U.S. to trade perpetual cryptocurrency futures.

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