Coinbase International is joining the ranks of centralized exchanges like Binance, Bybit, Bitget, and OKX by introducing a launchpad for emerging crypto projects.
Announced on June 17, Coinbase disclosed that “Pre-launch markets enable users to trade perpetual futures contracts on tokens that have not been officially released yet.” Once the underlying token is listed on relevant spot exchanges, the contract will transition into a standard perpetual contract.
This new feature will be accessible to institutional investors through Coinbase International and to retail traders through Coinbase Advanced. Assets in the pre-launch market will have an initial margin cap of 50%, with leverage set at 2x, and a maximum position limit of $50,000 per token.
Unlike traditional standard futures, this instrument operates differently. However, Coinbase cautioned that due to the high-risk nature of pre-launch markets, they are susceptible to lower liquidity, increased volatility, and higher liquidation risks. Furthermore, pre-launch instruments do not benefit from the exchange’s Liquidity Support Program, leading to additional risks of automatic liquidation.
Moreover, there is a possibility that pre-launch tokens may not progress to the full listing phase, as explained by Coinbase International.
Established in May 2023, Coinbase International is the international branch of the well-known U.S.-based exchange. The platform holds a Class F license issued by the Bermuda Monetary Authority.
In related news, Fireblocks has added support for Coinbase International for perpetual futures and spot trading.