Coinbase International is taking a cue from centralized exchanges like Binance, Bybit, Bitget, and OKX by introducing a launchpad for emerging crypto projects.
According to Coinbase, “Pre-launch markets enable users to engage in 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.
This feature will be accessible to institutional investors through Coinbase International and to retail traders via Coinbase Advanced. Pre-launch market assets are limited to an initial margin of 50% or 2x leverage, with a maximum position limit of $50,000 per token.
Unlike traditional standard futures, this instrument operates differently. However, Coinbase cautioned that due to the high-risk nature of pre-launch markets, they are susceptible to lower liquidity, higher volatility, and increased liquidation risk. Furthermore, pre-launch instruments do not benefit from the exchange’s Liquidity Support Program, which increases the risk of auto-liquidation.
There is a possibility 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 well-known U.S.-based exchange. The platform is licensed under Class F by the Bermuda Monetary Authority.
In a related development, Fireblocks has included Coinbase International for perpetual futures and spot trading.