- Coinbase to launch SHIB futures, boosting meme coin’s market impact and trading options.
- New altcoin futures, including DOT, XLM, AVAX, and LINK, also set for July 15 debut.
- SHIB futures offer cash settlement, manage volatility, and lower upfront capital needs.
Coinbase intends to broaden its range of cryptocurrency derivatives by launching futures contracts for Shiba Inu (SHIB) on July 15. The popular meme coin market is predicted to be greatly impacted by this move. Margin and cash settlement are features of the SHIB futures contracts. With a token price of $0.00001, each contract will contain 10 million SHIB.
The final settlement will take place at 4:00 PM London time on the last Friday of each contract month. This development is expected to boost Shiba Inu’s appeal in the cryptocurrency market, giving traders a new opportunity for investment and speculation.
Besides SHIB futures, Coinbase is also taking steps to expand its derivatives platform by submitting applications to the Commodity Futures Trading Commission (CFTC) for futures contracts linked to several popular altcoins.
These altcoins include Polkadot (DOT), Stellar Lumens (XLM), Avalanche (AVAX), and Chainlink (LINK). The launch date for these altcoin futures is also set for July 15. Therefore, Coinbase aims to offer users more tools for risk management and price speculation with 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 to manage this volatility.
These controls include price limits, margin levels, and daily price limits. The platform’s experience in handling high volatility with its existing products ensures traders can expect a stable trading environment for SHIB futures.
Both scalability and transaction fees are anticipated to be enhanced by the future Shibarium Layer 2 solution. This improvement will make SHIB much more useful for regular transactions and decentralized apps.
These futures contracts need less upfront capital. This aligns with Coinbase’s goal to diversify its products and improve the trading experience for users. Additionally, these futures contracts are expected to enhance market dynamics and offer more comprehensive trading options.
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