Coinbase intends to introduce futures trading for Dogecoin, praising the meme-inspired cryptocurrency’s evolution over the years.
Coinbase has communicated its plans to the US Commodity Futures Trading Commission (CFTC) via written correspondence.
Coinbase appears to be investigating options to expand its range of services, aiming to attract more users to its platform and encourage engagement with digital assets in diverse ways. The cryptocurrency exchange is currently exploring the possibility of introducing a futures trading feature for Dogecoin. With futures trading, individuals can mitigate risks associated with the future value of an asset through smart contracts, ensuring that buying and selling of assets occur on a predetermined date at the initially speculated price.
Advancing with this strategy, Coinbase has submitted its proposals to the US Commodity Futures Trading Commission (CFTC) in written correspondence. In the letter, the exchange delineates its intentions to introduce futures contract products featuring a cash settlement mechanism. Highlighting its interest in DOGE, Coinbase conveyed to the CFTC, “The sustained popularity of Dogecoin and the enthusiastic support from its active community indicate that it has evolved beyond its meme origins to become a fixture in the cryptocurrency realm.”
As of the time of this writing, Dogecoin was priced at $0.15 (approximately Rs. 12.3) according to Gadgets360’s cryptocurrency price tracker. Images of Coinbase’s submission to the CFTC have emerged on various social media platforms.
Coinbase is preparing to introduce its Dogecoin futures trading service by April 1. According to a report from CoinTelegraph, the exchange may potentially roll out this service on the Coinbase Derivatives platform without awaiting approval from the CFTC, utilizing the ‘self-certification’ approach. Meanwhile, CoinMarketCap data indicates that Dogecoin has surged by 19.90 percent in value over the past 24 hours amidst these developments.
Since its establishment in 2013, Dogecoin has experienced significant growth in the cryptocurrency space. Initially conceived as a humorous project by Billy Markus and Jackson Palmer, its logo is inspired by Elon Musk’s Shiba Inu pet. From its inception to the current day, Dogecoin’s market capitalization has surged to $21.4 billion (approximately Rs. 1,78,065 crore), securing the ninth position in terms of market cap size on CoinMarketCap.
Coinbase’s interest in futures trading extends beyond Dogecoin to include other cryptocurrencies like Litecoin and Bitcoin Cash. Both Litecoin and Bitcoin Cash are currently trading at $83.01 (approximately Rs. 6,900) and $399.82 (approximately Rs. 33,236), respectively.
