Coin Edition -
- Coinbase (NASDAQ:COIN) to launch SHIB futures on July 15, expanding regulated altcoin trading.
- New SHIB futures offer cash-settled contracts, enhancing trading opportunities.
- Coinbase expands altcoin futures with DOT, XLM, AVAX, LINK, boosting market depth.
Coinbase is expanding its cryptocurrency derivatives offerings with the introduction of Shiba Inu (SHIB) futures contracts on July 15, a move that could significantly impact the popular meme coin’s market.
The contracts will be cash-settled and margined, with each contract comprising 10 million SHIB, priced at $0.00001 per token. The futures will be listed under the contract code SHB and will follow a daily settlement schedule at 3:00 PM CT. Final settlement will occur at 4:00 PM London time on the last Friday of each contract month. This development is expected to enhance Shiba Inu’s appeal in the cryptocurrency market, offering traders a new avenue for investment and speculation.
Exciting news for SHIB traders! Coinbase Derivatives announces launch of SHIB Futures on July 15, offering a regulated platform for trading. Contracts will be cash-settled and margined, with a contract size of 10 million SHIB. Price set at $0.00001 per token. Get ready for new… pic.twitter.com/OKMqXs620E— Collin Brown (@CollinBrownXRP) July 1, 2024
In addition to SHIB futures, Coinbase has taken steps to expand its derivatives platform by submitting applications to the Commodity Futures Trading Commission (CFTC) for futures contracts linked to several popular altcoins, including Polkadot (DOT), Stellar Lumens (XLM), Avalanche (AVAX), and Chainlink (LINK). The planned launch date for these altcoin futures is also set for July 15. Coinbase aims to provide users with more tools for risk management and price speculation through these new futures products.
The introduction of SHIB futures is particularly noteworthy given SHIB’s volatile nature. SHIB’s volatility stems from its lower market cap, meme coin status, and strong community-driven price movements. Coinbase plans to implement robust risk controls, such as price limits, margin levels, and daily price limits, to manage this volatility. The platform’s experience in handling high volatility with its existing products ensures traders can expect a stable trading environment for SHIB futures.
Furthermore, SHIB’s market overview highlights its decentralized nature and community-driven origins. Launched in August 2020, SHIB operates on the Ethereum blockchain and aims to build on the success of Dogecoin. The upcoming Shibarium Layer 2 solution is expected to improve scalability and reduce transaction fees, enhancing SHIB’s usability for everyday transactions and decentralized applications.
The exchange highlighted the benefits of these futures contracts in a recent statement. By offering these new products, Coinbase seeks to provide traders with opportunities for strategic participation in the cryptocurrency market, requiring less upfront capital. This initiative aligns with Coinbase’s goal to diversify its product range and enhance the overall trading experience for its users. The introduction of these futures contracts is expected to improve market dynamics and provide more comprehensive trading options.
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