Yahoo Finance Coinbase Lists Pre-Launch Ethereum Restaking Protocol at $12.2 Billion Valuation
In a recent development, Coinbase has listed the Ethereum (ETH) restaking protocol project, EigenLayer (EIGEN), for pre-launch trading. Coinbase’s announcement on X confirmed that EIGEN is now open for trading ahead of its official launch on Coinbase’s International Exchange and Coinbase Advanced. This is specifically for users in eligible jurisdictions outside of the US, UK, 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 B.” EigenLayer enables ETH holders to re-stake their tokens for use as “cryptoeconomic security” for protocols other than Ethereum, in return for protocol fees and rewards. An example: if you staked $100 of ETH for 10 years at a rate of 5%, you would have $127. However, if you restaked the original ETH just one time for a total of $100 staked across 2 protocols for 10 years at a rate of 5%, you would have $154.
The pre-launch trading feature on Coinbase is a novel addition. It permits users to trade perpetual futures contracts on tokens that are yet to be launched. Once the underlying token is launched on relevant spot exchanges, the instrument transitions 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 has also issued a warning to users about the increased risks associated with trading pre-launch digital assets. The exchange emphasized the need for users to fully understand the risks involved before trading contracts.
The listing of EigenLayer’s restaking protocol on Coinbase for pre-launch trading marks a significant step in the evolution of the cryptocurrency market. This move not only provides traders with an opportunity to engage in futures contracts on tokens that are yet to be launched, but it also reflects the growing acceptance and integration of Ethereum-based protocols in the broader digital asset ecosystem.
Furthermore, the introduction of pre-launch trading on Coinbase could potentially pave the way for other exchanges to follow suit, thereby expanding the range of trading options available to cryptocurrency investors. However, it’s crucial for traders to heed Coinbase’s warning and fully understand the risks associated with pre-launch trading.
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This article Coinbase Lists Pre-Launch Ethereum Restaking Protocol at $12.2 Billion Valuation originally appeared on Benzinga.com
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