The North American derivatives exchange Nadex is expanding its cryptocurrency product lineup by introducing derivatives on memecoins such as PEPE and FLOKI.
New Memecoin Derivatives
According to filings with the United States Commodity Futures Trading Commission (CFTC), Nadex has listed derivatives on memecoins PEPE, FLOKI, Dogelon Mars (ELON), and BONK. The combined market capitalization of these memecoins is nearly 7 billion dollars, highlighting their significance in the market.
Growth of Derivatives Market
Nadex added these new contracts to its existing suite of cryptocurrency products, which includes derivatives on blockchain network tokens like Bitcoin and Ether. The 'Touch Bracket' contracts are designed to pay out if the token's spot price reaches an agreed-upon threshold before the contract expires.
Regulation and New Products
Regulated exchanges in the US like Nadex and the Chicago Mercantile Exchange (CME) are actively developing the crypto derivatives market. Nadex self-certifies products it believes comply with existing regulations, allowing for swift market entry. Trading volumes of Nadex contracts tied to BTC, ETH, and Litecoin in 2023 exceeded 28 million units.
Nadex's decision to expand its derivatives offering to include memecoins indicates growing interest in cryptocurrencies as volatile markets and emphasizes the focus on creating products that meet regulatory standards.
