Ethereum
Coinbase lists Ethereum takeover protocol ahead of launch at $12.2 billion valuation
Coinbase lists Ethereum takeover protocol ahead of launch at $12.2 billion valuation
In a recent development, Coinbase has listed Ethereum’s (ETH) takeover protocol project, EigenLayer (EIGEN), for pre-launch trading. Coinbase announcement on X has confirmed that EIGEN is now open for trading ahead of its official launch on the Coinbase International Exchange and Coinbase Advanced. This is specifically intended for users in eligible jurisdictions outside of the United States, United Kingdom and Canada.
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The exchange explained: “You can now trade EIGEN-PERP with up to 2x leverage. EIGEN opens with a price of $7.307 and an implied FDV of $12.2 billion. EigenLayer allows ETH holders to reinvest their tokens for use as “cryptoeconomic security” for protocols other than Ethereum, in exchange for protocol fees and rewards. An example: if you stake $100 of ETH for 10 years at a rate of 5%, you would have $127. However, if you reinvest the original ETH just once for a total of $100 staked across 2 protocols for 10 years at a rate of 5%, you will have $154.
The pre-launch trading feature on Coinbase is an innovative addition. It allows users to trade perpetual futures on tokens that have not yet been launched. Once the underlying token is launched on the relevant spot exchanges, the instrument moves to a standard perpetual contract. Its accepted collateral/margins were listed as USDC, BTC, and ETH with a minimum order size of 10 USDC.
However, Coinbase also warned users of the increased risks associated with trading digital assets ahead of the launch. The exchange stressed the need for users to fully understand the risks involved before trading contracts.
The list of Takeover of EigenLayer The protocol on Coinbase for pre-launch trading marks an important milestone in the evolution of the cryptocurrency market. The move not only provides traders with the opportunity to enter into futures contracts on tokens that have not yet launched, but it also reflects the growing acceptance and integration of Ethereum-based protocols into the broader ecosystem digital assets.
Additionally, the introduction of pre-launch trading on Coinbase could potentially pave the way for other exchanges to follow suit, expanding the range of trading options available to cryptocurrency investors. However, it is crucial that traders heed Coinbase’s warning and fully understand the risks associated with pre-launch trading.
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This item Coinbase lists Ethereum takeover protocol ahead of launch at $12.2 billion valuation originally appeared on Benzinga.com
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