Coinbase has recently announced the launch of pre-launch markets on its International and Advanced platforms, allowing users in eligible countries to trade new tokens before their official release. This innovative feature provides users with the opportunity to participate in price discovery and potentially make a fortune by trading perpetual futures contracts on upcoming projects.

The pre-launch markets operate outside of Coinbase's control, but the exchange reserves the right to temporarily or permanently suspend or delist a token. This means that the underlying token may never be launched, and the market could be suspended or delisted at any time. However, if the token is launched on an applicable spot exchange, the pre-launch market will convert to a standard perpetual future.

The markets are subject to strict leverage, position limits, and open interest caps. The Initial Margin is capped at 50%, and the Position Limit Size is fixed at a $50,000 notional instrument limit. Additionally, the market can only be traded in portfolios that are enabled for pre-launch trading with instruments in “PRE_LAUNCH” mode.

Pre-launch markets on Coinbase allow users to participate in price discovery for upcoming projects on a trusted and secure platform. The markets are unique and carry elevated risk, requiring caution and careful consideration. Positions of pre-launch trading are not linked to the Liquidity Support Program (LSP) and are at higher risk of Auto-Deleveraging compared to standard perpetual futures.

The pricing of the market is determined by the interaction of demand and supply by traders. This exciting development comes after Coinbase introduced perpetual futures contracts for Shiba Inu, Floki, and Bonk, marking significant steps towards expanding the platform to a wider audience.