Coinbase International is taking a page out of the playbook of centralized exchanges like Binance, Bybit, Bitget, and OKX by introducing a launchpad for emerging crypto projects.
According to Coinbase, the new pre-launch markets enable users to trade perpetual futures contracts for tokens that have not yet been launched. Once the underlying token is listed on relevant spot exchanges, the contract transitions into a standard perpetual contract.
Institutional investors can access this feature through Coinbase International, while retail traders can utilize it through Coinbase Advanced. Pre-launch market assets have a maximum initial margin of 50% or 2x leverage, with a notional position limit of $50,000 per token.
Unlike traditional standard futures, this instrument operates differently. However, Coinbase cautioned that pre-launch markets come with higher risks due to lower liquidity, increased volatility, and a greater possibility of liquidation. These markets are not covered by the exchange’s Liquidity Support Program, raising the chances of auto-liquidation.
Furthermore, there is a likelihood that pre-launch tokens may not progress to the full listing process, as explained by Coinbase International.
Established in May 2023, Coinbase International serves as the international branch of the US-based Coinbase exchange. The platform is licensed by the Bermuda Monetary Authority under Class F.
In a related development, Fireblocks has included Coinbase International for perpetual futures and spot trading.