- Nadex listed derivatives for memecoins PEPE, FLOKI, ELON, and BONK.
- Crypto derivatives are gaining popularity due to increased interest and sophisticated trading strategies.
- All 4 memecoins listed are yet to react favorably in the market
The North American derivatives exchange owned by Crypto.com – Nadex – recently introduced contracts linked to some of the most popular memecoins in the market: PEPE, FLOKI, ELON, and BONK. The information was revealed in filings submitted to the U.S. Commodity Futures Trading Commission (CFTC) on October 7.
All 4 memecoins were listed as “touch bracket” contracts, ie: contracts with price limits that pay out if the memecoin’s price hits a certain agreed-upon level within those limits. This development is seen as a step forward in a regulative environment where altcoins are gradually gaining legitimacy and oversight.
Growth of Crypto Derivatives
Crypto derivatives – contracts that obtain their value from other generally more established digital currencies like Bitcoin or Ethereum – are quickly gaining popularity in the U.S. and other parts of the globe. Generally speaking, these contracts offer investors an easier and less risky form of investment – especially when talking about memecoins.
Why They Are Happening
- Growing Interest: People are always on the lookout for new money-making opportunities, and crypto derivatives let them wager on cryptocurrency price changes.
- Advanced Trading Methods: Traders use derivatives to protect against risks or to amplify their positions, allowing them to control larger trades with smaller investments.
- Rising Demand: As more people show interest in cryptocurrencies, the demand for crypto-related products increases.
This trend is accelerating after the U.S. Securities and Exchange Commission (SEC) permitted Nasdaq to list options for Bitcoin ETFs and iShares Bitcoin Trust (IBIT). This is certainly a big deal because it means that institutional investors (like big companies and funds) can now trade these options, which helps bring more legitimacy and stability to the crypto market.
Moreover – the fact that the SEC is compliant with the listing of cryptocurrency derivatives shows that perhaps the commission is more open to accepting crypto-related products. Also – it could pave the way for more investors coming from more traditional sectors to begin investing in digital assets.
How The Memecoins Reacted in The Market
Surprisingly – none of the aforementioned memecoins have gained value following the Nadex listing announcement. Floki (FLOKI) is currently down by 2.15% over the past seven days – while the 24-hour chart shows a decrease of 4.33% in value.
Similarly, Dogelon Mars (ELON) is also down by 2.09% according to CoinMarketCap – the weekly charts show the currency almost breaking even at a negative 0.46%. Pepe (PEPE) and Bonk Inu (BONK) stand out as the biggest losers of this select list both down by over 5% over the past 24 hours.
