Coinbase has implemented pre-launch market trading to expose investors to alternative currencies before the launch of mainstream exchanges.
Coinbase, an American cryptocurrency exchange, has officially proclaimed its support for pre-launch markets on Coinbase International Exchange and Coinbase Advanced.
Coinbase Introduces New Market Strategy
This most recent inclusion allows users to trade new tokens before their launch or release to the general public. Additionally, users can engage in price discovery on a secure and reputable platform. Specifically, they could conjecture the value of the new token before its actual launch.
Notably, pre-launch markets differ considerably from traditional perpetual futures markets. One of the most evident distinctions is that the former presents users with distinctive considerations and carries significant risks. Consequently, institutional and retail investors are advised to exercise caution in their trading activities until they comprehensively understand the potential hazards.
Individuals unfamiliar with the complexities of pre-launch markets are advised to avoid the new Coinbase offering.
The first pre-launch listing is scheduled for Monday, after which interested users can interact with the tokens. The Coinbase International Exchange platform is available to institutional investors, while retail traders must navigate the Coinbase Advanced route.
Coinbase shares Crucial Disclosures
Note that the new platform has yet to be incorporated into Coinbase’s Liquidity Support Program (LSP). As a result, the exchange cautions that these pre-launch markets may be more susceptible to increased liquidation risk, higher volatility, and reduced liquidity due to their high-risk nature. However, these markets may be more vulnerable to Auto-Deleveraging than conventional perpetual futures.
After a succession of altcoin listings this month, this launch is a testament to the exchange’s dominance in the US market. The offering is exclusive to Coinbase consumers who do not reside in the United States, Canada, or the United Kingdom.
One of the most recent additions to Coinbase is its smart consumer wallet. In addition to other benefits, this product intends to facilitate the seamless integration of new users. According to the company, the wallet is designed to enroll 1 billion users on-chain by addressing complex onboarding, network fees, and recovery phrases.
