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Coinbase has launched pre-IPO perpetual contracts for eligible non-US users in select markets through Coinbase Bermuda Ltd., highlighting that these products feature valuation-based index pricing and carry elevated risks including IPO conversion risk, lower liquidity, and higher volatility.
Coinbase announced the launch of pre-IPO perpetual contracts available to eligible non-US users in select markets via Coinbase Bermuda Ltd., which is BMA-licensed. According to the company, these contracts differ from standard perpetual contracts due to their valuation-based index pricing and carry specific risks such as IPO conversion risk, reduced liquidity, and higher volatility.
The broker highlighted that the product comes with elevated risks, and advised users to trade cautiously. No additional details about the scope, supported assets, or terms were provided in the announcement.
Coinbase is a cryptocurrency exchange that offers access to a wide range of digital assets, including Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash, via both web and mobile platforms. The exchange provides offline asset storage, security features, analytical tools, training resources, and solutions for individuals, businesses, and developers. To learn more about its features and services, see the broker profile on Traders Union: full review on Traders Union.
For additional context, the previous Coinbase update on Traders Union highlighted ongoing downside pressure and weak momentum, with technical indicators suggesting a bearish bias. You can read the earlier news about Coinbase here.