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Coinbase has launched pre-IPO perpetual contracts for eligible non-US users in select markets through its Bermuda subsidiary. The contracts feature valuation-based index pricing and may carry IPO conversion risk, lower liquidity, and higher volatility.
Coinbase announced the launch of pre-IPO perpetual contracts for eligible non-US users in certain markets, offered via its Bermuda subsidiary licensed as Coinbase Bermuda Ltd. According to the broker, these contracts are distinct from standard perpetuals due to features such as valuation-based index pricing, potential IPO conversion risk, lower liquidity, and higher volatility, which may result in increased risk for traders. No further specifics about the contracts or participation requirements were provided in the post.
Coinbase is a cryptocurrency exchange platform that supports trading of a wide range of digital assets, including Bitcoin, Ethereum, Litecoin, Ripple, and more. It offers a web platform and mobile apps for iOS and Android, serving users in over 100 countries and providing features like offline asset storage, free e-wallets, virtual cards, and a variety of educational resources. For further details, see the broker profile on Traders Union.
For additional context, see the previous Coinbase update on Traders Union, which detailed how the broker froze over $3 million in crypto linked to scam networks as part of a major law enforcement effort. That news highlights Coinbase's ongoing cooperation in combatting crypto-enabled fraud and supports the broader narrative of increased industry vigilance.