Key Takeaways
- Coinbase is preparing SpaceX pre IPO perpetual futures, according to Bankless.
- Perpetual futures are derivatives with no expiry date, common in crypto trading.
- Pre IPO refers to a company that has not yet listed publicly.
- The product would let traders speculate on SpaceX's value before any listing.
Coinbase is preparing to launch SpaceX pre IPO perpetual futures contracts, according to Bankless. The product would apply a crypto-style derivative to a private company.
What perpetual futures are
Perpetual futures are contracts that track an asset's price without a fixed expiry date, a format widely used in crypto markets. Applying them to a pre IPO company would let traders take positions on its value before it ever lists on a public exchange.
A new kind of exposure
Bringing derivatives to private company valuations is unusual and would give traders exposure they normally cannot get until a company goes public. As with all leveraged derivatives, these products carry significant risk and depend heavily on how the underlying value is referenced.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and carry risk. Always do your own research before investing.
