Coinbase Advanced to Offer Pre-Launch Token Trading

US-based Coinbase is the first tier-1 exchange to offer pre-market perpetuals.

By: Squiffs Loading...

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Crypto exchange Coinbase has unveiled its newest offering, pre-launch markets, which will enable users to trade perpetual futures contracts on tokens that are in their pre-token generation event (TGE) stage.

Coinbase will become the first major exchange to incorporate pre-launch perpetuals, a market niche that has become increasingly popular through onchain products such as Hyperliquid and Whales Market. The new feature will be available exclusively to Coinbase Advanced users.

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Current iterations of pre-market trading generally have low liquidity and volume, which can lead to inaccurate valuations leading up to a project’s TGE. Operating on a centralized platform could provide a more liquid environment for users to trade tokens in their pre-launch stage.

The pre-launch trading platform differs significantly from traditional perpetual markets. It includes third-party risks such as the tokens never launching, and higher liquidation risks due to the increased volatility associated with pre-market valuations.