Coinbase is set to introduce a new feature that will allow users to trade new crypto tokens prior to their official launch. The Coinbase International Exchange and Coinbase Advanced will provide traders in eligible jurisdictions outside of the US, the UK, and Canada the opportunity to purchase perpetual futures contracts for assets that have not yet been listed on traditional exchanges.

Once the underlying asset for a pre-launch perpetual futures contract is officially listed on an exchange, the contract will automatically convert to a standard perpetual contract. Coinbase has stated that this upcoming feature will enable traders to engage in “price discovery,” but has also cautioned that pre-launch markets come with increased risks.

“Due to the high-risk nature of pre-launch markets, these markets may experience lower liquidity, higher volatility, and greater liquidation risk. It is important to note that positions in pre-launch markets will not be included in our Liquidity Support Program (LSP), making them more susceptible to Auto-Deleveraging compared to standard perpetual futures.”

Coinbase Advanced, the exchange’s advanced trading platform, will cater to retail traders by offering pre-launch markets, while the Coinbase International Exchange will provide these instruments to eligible institutional users. The funding rates for pre-launch perpetual futures contracts will follow the same formula as standard perpetual futures contracts, as per Coinbase’s guidelines.

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