Coinbase launches pre-release marketplace! Provide up to 2x standard contract trading for upcoming tokens

According to the latest announcement from the US exchange Coinbase, a new "pre-release market" function will be opened to users in some regions. Users will be able to trade upcoming tokens on the exchange. Standard Contract. The Block revealed that the service may be launched next Monday.

Coinbase launches pre-issuance market

Following the footsteps of other offshore centralized exchanges (CEX), Coinbase also recently announced that it will launch " "Prelaunch market" provides standard contract trading services for upcoming tokens: The prelaunch market on Coinbase will allow users to participate in the price performance of upcoming projects on a trustworthy and secure platform.

In terms of trading restrictions, the initial margin for pre-release market assets is capped at 50% and 2x leverage, while the position value is limited to $50,000 per token.

At the same time, after the relevant tokens are listed on the spot exchange, the standard contract in the pre-release market will be seamlessly converted into a perpetual contract.

It is reported that qualified institutional investors can trade through Coinbase International Edition; while retail traders can trade through Coinbase Advanced.

Coinbase: High volatility, not protected by LSP

Among them, Coinbase also points out its price operation mechanism. Unlike standard contracts, this market token uses a 4-hour exponential moving average. (EMA) as the pre-release index price.

In addition, regarding the risks of the pre-issuance market, Coinbase stated: In view of the high-risk nature of the pre-issuance market, this market is more prone to lower liquidity, higher volatility, and higher liquidation risk.

And added, “Therefore, the pre-release market is not protected by Coinbase’s Liquidity Support Plan (LSP).”

It is reported that the LSP is part of Coinbase’s liquidation process and was selected The trading firm will programmatically execute liquidation immediately, and LSP participants must provide a minimum amount of capital in order to receive the allocated liquidation position in another segregated account.

The announcement also stated at the end that tokens on the pre-release market may still not be available for spot or perpetual contract trading on listed exchanges. If a token cannot complete the relevant process, the pre-issued token may be suspended from trading or forced to be delisted.

The lawsuit with the SEC is still pending

Currently, the legal battle between Coinbase and the SEC is still ongoing, and the "Financial Innovation and Technology Act for the 21st Century (FIT21)" recently passed by the two parties in the U.S. House of Representatives "It may also bring drastic changes to this case and change the overly broad jurisdiction of the U.S. Securities and Exchange Commission (SEC) over the cryptocurrency field.

At the same time, the listed exchange’s years of litigation with law enforcement agencies will also play a key role and play an important role in the future of encryption regulation in the United States.

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