Coinbase to Introduce Pre-Market Trading for Altcoins

The cryptocurrency derivatives exchange Coinbase International will launch trading of perpetual contracts for altcoins prior to their listing on the main platform.

The platform aims to emulate competitors such as Binance, Bybit, Bitget, and OKX by creating its own launchpad.

“When the underlying token is launched on the respective spot exchanges, the instrument will convert into a standard perpetual contract”, the announcement stated.

The product will be available to institutional investors through Coinbase International and to retail traders via Coinbase Advanced.

These contracts will have an initial margin requirement of 50% or leverage of two times.

The notional position limit will be $50,000 per token.

Platform representatives cautioned that “given the high-risk nature of launchpads, these markets are more susceptible to reduced liquidity, increased volatility, and liquidation risk.”

Such instruments are not covered by the exchange’s liquidity support program, leading to additional risks of automatic position closures.

Coinbase International warned of the possibility that some tokens might not receive a listing. In such cases, the platform reserves the right to suspend or terminate trading of any perpetual contract.

In May 2023, Coinbase launched Coinbase International after obtaining a license from the Bermuda Monetary Authority.

This decision came amid an SEC investigation into the exchange’s listing procedures and its products — Coinbase Prime, Coinbase Wallet, and the staking service Coinbase Earn.

In December, the company added a spot trading mode to Coinbase International Exchange. Previously, this platform specialized exclusively in futures operations.