Coinbase Adds Worldcoin and Ordinals Perpetual Futures Trading

Popular crypto exchange Coinbase is set to list Worldcoin (WLD) and Ordinals (ORDI) perpetual futures products commencing April 11. These perpetual futures contracts, known as perpetual swaps, will allow traders to speculate, hedge, and engage in arbitrage activities. The opening of the ORDI-PERP and WLD-PERP markets will commence on or after 9:30am UTC on April 11, 2024.

Coinbase to List Worldcoin and Ordinals Perpetual Futures

San Francisco, California - April 11, 2024 - Leading cryptocurrency exchange Coinbase has announced the addition of Worldcoin (WLD) and Ordinals (ORDI) perpetual futures products to its platform, effective today.

The perpetual futures contracts, also known as perpetual swaps, will allow traders to speculate on the future price of WLD and ORDI without having to take physical delivery of the underlying assets. The contracts will trade under the tickers WLD-PERP and ORDI-PERP, respectively.

"We are excited to expand our offerings with the addition of WLD and ORDI perpetual futures," said Coinbase CEO Brian Armstrong. "These products will provide our users with new ways to trade and manage their crypto assets."

Worldcoin: Building a Privacy-Preserving Identity Network

Worldcoin is a non-profit organization founded in 2019 by Sam Altman, Max Novendstern, and Alex Blania. The organization aims to create a global network for human identity and financial inclusion.

The WLD token is a utility token that powers the Worldcoin network. It grants holders governance rights and allows them to participate in the decision-making process for the protocol's future development.

Ordinals: NFTs on the Bitcoin Blockchain

Ordinals is a project that enables the creation of non-fungible tokens (NFTs) on the Bitcoin blockchain. NFTs are digital assets that represent unique items, such as art, music, or collectibles.

ORDI is a memecoin that runs on the Bitcoin protocol and is the first token to be created as an Ordinal. The token's memetic nature and the novelty of NFTs on Bitcoin have generated significant interest in the project.

Perpetual Futures: A Trading Vehicle for Crypto Assets

Perpetual futures are derivative financial instruments that allow traders to speculate on the future price of an asset without having to take physical delivery. Unlike traditional futures contracts, perpetual futures do not have an expiration date, allowing traders to hold positions indefinitely.

To maintain the price of perpetual futures contracts in line with the spot price of the underlying asset, exchanges utilize a funding mechanism. This mechanism involves periodic payments between long and short positions to ensure that the futures price reflects the current market sentiment.

Trading Considerations and Risks

While perpetual futures offer potential opportunities for profit, they also carry significant risks. The high volatility of cryptocurrencies and the need to maintain margin can lead to substantial losses if not managed properly.

Traders should carefully consider their risk tolerance and financial situation before engaging in perpetual futures trading. It is essential to have a clear understanding of the underlying asset, market dynamics, and the risks involved.

Bitcoin's Surge and Crypto Market Dynamics

The announcement of Coinbase's new perpetual futures products comes amidst a period of volatility in the cryptocurrency markets. On April 4th, Bitcoin experienced a significant surge, gaining over $4,000 in a single day.

The rally was attributed to a combination of factors, including anticipation of potential short liquidations and the increasing acceptance of cryptocurrencies in finance. However, despite the recent gains, JPMorgan Chase & Co's chief investment officer, Sharmin Mossavar-Rahmani, recently stated that the bank does not believe in cryptocurrencies as an investment asset class.

The contrasting views on cryptocurrencies highlight the ongoing debate about the role and value of digital assets in the financial system. As the crypto market continues to evolve, regulators and investors alike will need to grapple with the challenges and opportunities presented by this rapidly developing sector.