Bermuda

Coinbase International is following in the footsteps of centralized exchanges such as Binance, Bybit, Bitget and OKX in creating a launchpad for up-and-coming crypto projects.&nbsp;
“Pre-launch markets allow users to trade perpetual futures contracts on tokens that have not launched yet,” Coinbase&nbsp;<a href="https://help.coinbase.com/en/international-exchange/pre-launch-markets/what-is-a-pre-launch-market" target="_blank" rel="noopener nofollow">revealed</a> on June 17, adding: “When the underlying token is launched on applicable spot exchanges, the instrument converts to a standard perpetual contract.”
The feature will be available to institutional investors via Coinbase International and retail traders via Coinbase Advanced. Pre-launch market assets are capped at an initial margin of 50%, or 2x leverage, and a notional position limit of $50,000 per token.
The instrument also functions differently than traditional standard futures:
<blockquote data-ct-non-breakable="true">
 “Pre-launch markets have a different index price mechanism than standard perpetual futures and use a 4-hour exponential moving average (EMA) of the instrument’s mark prices for the Pre-Launch Index Price.”
</blockquote>
Coinbase also warned that “given the high-risk nature of pre-launch markets, these markets are more prone to lower liquidity, higher volatility and increased liquidation risk.” In addition, pre-launch instruments are not supported by the exchange’s Liquidity Support Program, resulting in added risks of auto-liquidation.
There is also a chance that pre-launch tokens may never make it to the full listing process, as Coinbase International explained:
<blockquote data-ct-non-breakable="true">
 “There is a risk — outside of Coinbase’s control — that the underlying token may never launch. If such a determination was made, the pre-launch market would not be able to convert into a standard perpetual futures market, and the market may need to be suspended and/or delisted.”
</blockquote>
Launched in May 2023, Coinbase International is the overseas arm of the namesake United States-based exchange. The platform holds <a href="https://cointelegraph.com/news/coinbase-starts-perpetual-futures-trading-retail-customers">a Class F license</a> from the Bermuda Monetary Authority.&nbsp;
Related:&nbsp;<a href="https://cointelegraph.com/news/fireblocks-coinbase-international-perpetual-futures-spot-trading">Fireblocks adds Coinbase International for perpetual futures, spot trading</a>

Coinbase International announces support for pre-launch market

Cointelegraph

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