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    Crypto.com’s US exchange lists 4 memecoin derivatives

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    Nadex, a North American crypto derivatives exchange owned by Crypto.com, has filed submissions to the US Commodity Futures Trading Commission to offer contracts based on meme-inspired tokens including PEPE, FLOKI, Dogelon Mars (ELON) and BONK, which hold a combined worth of $7 billion. The contracts offered act as a safety net, paying out if the price of the tokens reaches set high or low points before expiration. With Commodity Futures Trading Commission approval, such offerings are becoming common on US exchanges.

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    Crypto.com’s Nadex, a derivatives exchange in North America, has started offering contracts based on meme-inspired cryptocurrencies including PEPE, FLOKI, Dogelon Mars (ELON), and BONK. This was confirmed by filings submitted on October 7th to the Commodity Futures Trading Commission in the U.S.

    These four cryptocurrencies hold a combined worth close to $7 billion according to data from CoinMarketCap. This move adds to Nadex’s already extensive offering of crypto-based derivative products, with other offerings tied to popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH).

    The instrument offered by Nadex is referred to as ‘touch bracket’ contracts. Essentially, they are meant to serve as a safety net for investors, paying out if the price of a cryptocurrency reaches a predetermined high or low point before the contract’s expiration date.

    These types of contracts work well in volatile markets, such as those for cryptocurrencies, and are also structured in a way that reduces the potential for contract manipulation, according to Nadex.

    It appears that crypto derivatives are becoming more common on regulated U.S exchanges. In fact, some well-established trading platforms, like the Chicago Mercantile Exchange (CME), are seeing a rise in such offerings.

    Last month, Nasdaq got the green light from the U.S. Securities and Exchange Commission (SEC) to offer options related to BlackRock’s Bitcoin exchange-traded fund (ETF), named iShares Bitcoin Trust (IBIT). This decision is still awaiting final approval from other agencies, including the Commodity Futures Trading Commission.

    The total number of Nadex contracts for BTC, ETH, and Litecoin (LTC) that traded in 2023 surpassed 28 million, as per the filing. Due to this surge in demand, Nadex keeps expanding its range of crypto-related offerings.

    Derivatives providers like Nadex test out derivative products they believe adhere to current regulations and do not require explicit regulatory permission before listing.

    Source: Cointelegraph

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