Coinbase International Launches Pre-Launch Market for Crypto Projects

• Coinbase International launches pre-launch markets for crypto projects.Allows trading of perpetual futures contracts on tokens before launch.
• Available to institutional investors and retail traders via Coinbase platforms.Assets capped at 50% initial margin and $50,000 notional position limit.
• Pre-launch markets use a different index price mechanism than standard futures.Based on a 4-hour exponential moving average of mark prices.
• High-risk nature of pre-launch markets leads to lower liquidity and volatility.Not supported by exchange's Liquidity Support Program, increasing liquidation risk.
• Tokens may not launch, leading to suspension or delisting of pre-launch markets.Risk outside of Coinbase's control.
• Coinbase International holds Class F license from Bermuda Monetary Authority.Launched in May 2023 as overseas arm of US-based exchange.

Summary :
Coinbase International is launching a pre-launch market for crypto projects, similar to other centralized exchanges like Binance and Bybit. This feature allows users to trade perpetual futures contracts on tokens that have not yet launched. Once the underlying token is launched on spot exchanges, the instrument converts to a standard perpetual contract. The pre-launch market will be available to institutional investors through Coinbase International and retail traders through Coinbase Advanced. However, Coinbase warns that these markets are high-risk, with lower liquidity, higher volatility, and increased liquidation risk. Pre-launch tokens also carry the risk of never making it to the full listing process, in which case the pre-launch market would be suspended or delisted. Coinbase International, the overseas arm of the US-based exchange, was launched in May 2023 and holds a Class F license from the Bermuda Monetary Authority.

Sources :

- CoinTelegraph