Coinbase Plans to Launch Dogecoin Futures Contracts, DOGE Surges
Coinbase, one of the world’s leading cryptocurrency exchanges, has announced its intention to launch cash-settled futures contract products for Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) as early as April 1, 2024.
In a series of letters addressed to the United States Commodity Futures Trading Commission (CFTC) on March 7, Coinbase Derivatives outlined its plans, emphasizing the “enduring popularity” of Dogecoin as a key factor in its decision.
Key highlights:
- Coinbase Derivatives plans to launch cash-settled futures contract products for Dogecoin, Litecoin, and Bitcoin Cash.
- The exchange may list the futures contracts on its platform before receiving official approval from the CFTC.
- Coinbase justifies its decision by claiming that Dogecoin has transcended its origins as a meme to become a staple of the cryptocurrency world.
- The price of Dogecoin has surged 17% following the announcement, currently trading at $0.1486.
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Interestingly, Coinbase’s letters to the CFTC suggest that the exchange could list the futures contracts on its platform even before receiving official approval from the regulatory agency.
By invoking the “self-certification” method, Coinbase Derivatives asserts that it can proceed with the listing as long as the products adhere to the regulatory guidelines established by the CFTC.
Dogecoin soars after Coinbase announcement
In its letter specifically addressing the Dogecoin futures product, Coinbase Derivatives stated, “Coinbase Derivatives […] hereby submits for self-certification its initial listing of the Dogecoin futures contract to be offered for trading on the Exchange on or after April 1, 2024.”
Coinbase justified its move by claiming that the meme coin has evolved beyond its humorous origins to become a fundamental element of the cryptocurrency industry.
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The letter asserts, “Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.”
The announcement has had an immediate impact on the price of Dogecoin, which has surged 17% on the day and is currently trading at $0.148, according to data from CoinMarketCap. Also, the meme coin’s 24-hour low and high stand at $0.1235 and $0.1532, respectively.
