Dogecoin Surges as Coinbase Reveals Plans to Launch DOGE Futures Trading
Dog-themed cryptocurrency Dogecoin (DOGE) is experiencing a surge in value following the announcement by Coinbase that it will be launching futures trading for the popular memecoin. Coinbase, one of the top US-based crypto exchange platforms, recently registered with the Commodity Futures Trading Commission (CTFC) to offer DOGE derivatives starting from April 1st.
Coinbase’s Filing
In a filing submitted earlier this month, Coinbase stated:
“Pursuant to Commodity Futures Trading Commission 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 1st.”
This news caused a significant increase in the value of DOGE, with prices rising from a low of $0.129 on March 20th to a peak of $0.155, representing a 20% surge. As of now, DOGE has retraced slightly and is trading at around $0.152, indicating a 15% increase in the last 24 hours.
Potential SEC Objections
Bloomberg analyst James Seyffart speculates that the U.S. Securities and Exchange Commission (SEC) may object to Coinbase’s plan, even though it would be difficult to argue that DOGE futures should be classified as securities. Seyffart tweeted:
“This is interesting… wonder if the SEC objects to these being classified ‘commodities futures’ vs ‘securities futures’. These all forked from Bitcoin so ‘these are securities’ claims would be hard to make after spot Bitcoin ETF approvals. Might be why Coinbase chose them.”
Inflationary Nature of Dogecoin
In its filing, Coinbase highlights the inflationary mechanism of Dogecoin, which makes it suitable as a currency for online transactions rather than a store of value. Unlike Bitcoin and Litecoin, Dogecoin does not have a cap on its total supply, with over 140 billion coins currently in circulation. New blocks are added to the Dogecoin blockchain every minute, with a reward of 10,000 DOGE per block.
The inflationary supply model of Dogecoin encourages spending and usage in social media tipping and online forums. This distinguishes it from the deflationary model of Bitcoin and many other cryptocurrencies that are primarily seen as digital investments.
Hot Take: DOGE Futures Boosting Dogecoin’s Value 🚀
Dogecoin has experienced a significant surge in value following Coinbase’s announcement about launching DOGE futures trading. This move by Coinbase allows traders to speculate on the price movements of DOGE without owning the actual cryptocurrency. The introduction of futures trading brings several implications for Dogecoin:
- Increased Accessibility: With the addition of DOGE futures on Coinbase, more investors can now access and trade this popular memecoin.
- Market Legitimacy: By offering futures trading for DOGE, Coinbase is further establishing Dogecoin as a legitimate asset in the crypto market.
- Liquidity Boost: The introduction of futures trading can potentially increase liquidity for DOGE, making it easier for traders to enter and exit positions.
Overall, Coinbase’s decision to launch DOGE futures trading demonstrates the growing demand and interest in Dogecoin as an investment option. As more platforms embrace DOGE and offer futures trading, we can expect to see continued growth and adoption of this unique cryptocurrency.
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