Coinbase Derivatives Unveils Plans For Dogecoin Futures & Altcoin Offerings

Coinbase Derivatives is paving the way to launch regulated futures contracts for the popular meme cryptocurrency Dogecoin and several other altcoins such as Litecoin and Bitcoin Cash. This development comes to light through a letter sent to the Commodity Futures Trading Commission (CFTC).

Moreover, the Dogecoin futures contract will be based on the Market Vector Coinbase Dogecoin Benchmark Rate, an index that tracks the real-time price of Dogecoin on the Coinbase exchange. The German Federal Financial Supervisory Authority (BaFin) notably regulates this index, ensuring transparency and reliability. Each contract will represent 5,000 DOGE, with Coinbase planning to cap positions at 20,000 contracts, totaling 100,000 DOGE.

Dogecoin, trading at around $0.15 on major exchanges according to CoinGecko data, originated as a meme-inspired cryptocurrency created by software engineers Billy Markus and Jackson Palmer in 2013. Despite its lighthearted beginnings, Dogecoin quickly amassed a dedicated following, propelling it to become one of the most recognizable cryptocurrencies.

The meme coin’s price skyrocketed in 2021, fueled by endorsements from high-profile figures like Elon Musk. The Tesla CEO’s frequent tweets and comments about Dogecoin drove significant speculation and interest, contributing to its meteoric rise.

Moreover, Coinbase, a leading US cryptocurrency exchange, unveiled plans to launch a derivatives exchange in May 2022. The exchange aims to provide institutional investors with a regulated trading environment for crypto derivatives. In June, the exchange announced its intention to offer Bitcoin and Ethereum futures contracts, marking a significant expansion of its offerings.

Coinbase Derivatives Expands With Dogecoin Futures

With the addition of Dogecoin futures and contracts for altcoins like Litecoin and Bitcoin Cash, Coinbase Derivatives is positioning itself as a comprehensive platform for trading a diverse range of cryptocurrencies. This move caters to the growing demand for regulated derivative products and reflects the increasing mainstream adoption and recognition of cryptocurrencies beyond Bitcoin and Ethereum.

Furthermore, as reputable exchanges like Coinbase Derivatives launch regulated futures contracts, they are expected to attract more institutional investors and legitimize the asset class as the cryptocurrency market evolves. Moreover, Coinbase Derivatives aims for a secure, compliant, and robust trading environment, but doubts linger about its reliability. They seek exposure to the volatile yet potentially lucrative world of cryptocurrency derivatives.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risk

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