Coinbase is launching a “pre-launch market” for trading cryptocurrencies before their official listing

To allow trading of tokens that have not yet officially launched, Coinbase unveiled something new: a pre-launch market. What does it consist of?

Coinbase introduces its marketplace for new assets ahead of launch

Monday, Coinbase has revealed the arrival of a new product, presented as a pre-launch market. This allows you to trade new cryptocurrencies before their launch, so you can speculate on their price before they actually hit the market:

💡 Want to create an account on the Coinbase platform? Follow our guide

As the Coinbase Trader account explains to its follower, this new product targets assets that have not yet crossed the threshold of their “token generation event » (TGE). To give a specific example, this pre-launch market may therefore concern new tokens with announced dropwhich has not yet happened.

Thus, such an instrument makes it possible to determine the price of an asset before its official arrival on the market:

Pre-launch markets allow users to trade perpetual futures contracts on tokens that have not yet launched. When the underlying token is launched on participating spot exchanges, the instrument is converted to a standard perpetual contract. Pre-launch markets on Coinbase allow users to participate in the pricing of upcoming projects on a reliable and secure platform.

However, this pre-launch market is not directly accessible from Coinbase’s consumer platform. As for institutional investors, they have access to it by Coinbase International. For retailers located in eligible jurisdictions outside of the United States, United Kingdom, and Canada, the Coinbase Advanced futures platform must be used.

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Coinbase also warns of the increased risks of this type of trading, which is less liquid than traditional markets, while volatility can be much higher.

Coinbase: sign up for the world’s most famous crypto exchange

Source: Coinbase

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