Exchange of derivatives BitMEX has introduced a new basket index product that allows users to wager on popular meme coins. According to a Thursday announcement, this offering commenced trading at 04:00 UTC on July 4.
The exchange likely devised this offering in response to the popularity of meme coins. Meme coins are digital currencies inspired by humorous internet parodies and can also be developed to ridicule the crypto industry.
Social media played a significant role in the popularity of these coins, as their creators generated enthusiasm to increase their prices. Their popularity has been further bolstered by the endorsement of even well-known figures such as Elon Musk, particularly Dogecoin.
The container is indicative of BitMEX’s ongoing initiative to broaden its selection of trading products. This initiative is by BitMEX Options and its Bitcoin perpetual swap XBTUSD, which provides a 250x leverage.
“Over the past year, meme coins have experienced extraordinary growth, and we have observed a growing desire among BitMEX users to participate in the growth,” stated Stephan Lutz, CEO of BitMEX.
He further noted that the abundance of these items can be overwhelming for merchants, resulting in a challenge in establishing a solid foundation.
BitMEX Enhances Trading Options with Leveraged Memecoin Basket
Therefore, what is the nature of the new product?
According to BitMEX, the new index functions similarly to the S&P 500 for meme currencies, consolidating them to facilitate trading. Additionally, liquidity is generated by consolidating multiple meme currencies into a single index. This, in turn, enables more advantageous trade executions.
Additionally, it provides a less hazardous opportunity for retail traders, particularly those apprehensive about volatility. According to the exchange, it is a linear perpetual swap that is USDT-margined and can accommodate up to 25x leverage.
BitMEX to Provide Memecoin Traders with a Prize Pool
Additionally, the BitMEX Meme Basket Index is calculated by averaging the prices of the top 10 meme coins, which are then weighted according to their market capitalization.
Its constituents are altered monthly to ensure consistency with the most successful meme coins. Modifications to the index are disclosed beforehand to guarantee transparency.
The contract’s inauguration is being commemorated by BitMEX, which offers a prize pool of up to 10,000 USDT to traders who utilize it.
