Haider Jamal

Jul 02, 2024

Coinbase Will Expand Altcoin Derivatives And Launch SHIB Futures

Coinbase will introduce Shiba Inu (SHIB) futures contracts on July 15th, expanding its cryptocurrency derivatives lineup. These contracts, denominated in SHIB tokens priced at $0.00001 each, will be cash-settled and margined.

Each contract will represent 10 million SHIB and will trade under the code SHB. Daily settlements will occur at 3:00 PM CT, with final settlements on the last Friday of each contract month at 4:00 PM London time. This move is anticipated to increase the potential and attractiveness of SHIB in the crypto market, offering traders a new avenue for investment and speculation.


Futures Contracts

In addition to SHIB, Coinbase has applied to the Commodity Futures Trading Commission (CFTC) for futures contracts tied to other popular altcoins such as Polkadot (DOT), Stellar Lumens (XLM), Avalanche (AVAX), and Chainlink (LINK). These altcoin futures are also slated for launch on July 15th, aiming to provide users with enhanced tools for managing risk and speculating on prices.

Coinbase is prepared to manage the inherent volatility of SHIB by implementing robust risk controls, including price limits, margin requirements, and daily price caps. This strategy draws on the experience of the platform in handling volatility with existing products, ensuring a stable trading environment for SHIB futures.


Capitalizing On Community Engagement

SHIB, launched in August 2020 on the Ethereum blockchain, aims to capitalize on its community-driven origins akin to Dogecoin (DOGE). The upcoming Shibarium Layer 2 solution promises improved scalability and reduced transaction costs, enhancing the utility of SHIB for everyday transactions and decentralized applications.

By diversifying its product offerings, Coinbase seeks to empower traders with strategic opportunities in the cryptocurrency market, requiring lower initial capital investments. This initiative aligns with the broader objective of Coinbase when it comes to enhancing its product range and enriching the overall trading experience. The introduction of these futures contracts is poised to enrich market dynamics and broaden trading options for users.


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