Coinbase is launching a feature on its international and advanced exchanges that lets users trade futures contracts on tokens before their official launch. This new function, set to debut soon, allows traders to take long or short positions with up to 2x leverage on unlaunched tokens.
This marks a significant innovation in the crypto trading space, enabling traders to engage in “pre-launch markets” for price discovery of upcoming projects. Institutional users will access this via Coinbase International Exchange, while eligible retail traders can use Coinbase Advanced.
Pre-launch markets allow trading of perpetual futures contracts for tokens not yet released. Once launched on spot exchanges, these contracts transition into standard perpetual futures contracts on Coinbase.
However, this feature carries elevated risks. Traders can potentially face issues if the underlying token is never launched or is removed from Coinbase. The platform has imposed strict limits on leverage and position sizes to mitigate risks.
Coinbase emphasizes caution, advising traders to fully understand the associated risks before participating. This strategic move aims to enhance market engagement and price discovery for upcoming crypto projects.
