Coinbase is preparing to launch a new feature that allows users to trade altcoins ahead of launch

Coinbase is preparing to launch a new feature that will allow users to trade new crypto tokens ahead of their launch.

Coinbase International Exchange and Coinbase Advanced will allow traders in eligible jurisdictions outside the US, UK and Canada to purchase perpetual futures contracts for assets that have not yet been listed on spot exchanges.

When the underlying asset of a pre-launch perpetual futures contract actually receives an exchange listing, the contract converts to a standard perpetual contract.

CoinBase He says the next feature will allow traders to “participate in price discovery,” across the exchange warns that pre-launch markets carry high risks.

“Given the high-risk nature of pre-launch markets, these markets are more prone to lower liquidity, higher volatility and increased liquidation risk. Please note that pre-launch market positions will not be allocated to participants in our Liquidity Support Program (LSP). Therefore, these markets will be exposed to a greater risk of self-deleveraging than standard perpetual futures.”

Coinbase Advanced is the exchange’s advanced trading platform and will offer pre-launch markets for retail traders, while Coinbase International Exchange will offer the tools for eligible institutional users.

According to Coinbase, pre-launch perpetual futures contracts will have funding rates that use the same formula as standard perpetual futures.

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