Good morning, and welcome to First Mover. I’m Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights.
- Price point: Altcoins outperform bitcoin for a second day. Axie Infinity's AXS is up 14% after announcing it's going to reimburse those affected by the Ronin network $600 million exploit.
- Market Moves: Coinbase has launched its first crypto derivatives product for retail traders. The company is hoping to capitalize on a market with $3 trillion in volume worldwide.
Altcoins outperformed bitcoin (BTC) for a second day as Polygon’s MATIC and Axie Infinity’s AXS posted gains above 15%.
Bitcoin is up 1.6% on the day, trading at around $20,900. Traders are looking at this weekend as another testing period for the cryptocurrency.
Polygon’s MATIC is among the top performers on Friday, rallying 18% on the day. MATIC was trading at 58 cents at press time.
The uptick comes as the protocol launched a product for allowing more private voting in decentralized autonomous organizations (DAOs) and announced it has partnered with KlimaDAO (a decentralized collective of environmentalists, developers and entrepreneurs) as part of an environmental initiative. Read more on that here.
Although MATIC is outperforming the rest of the crypto market, it is worth noting that it's 80% down from its all-time high of $2.90 reached in December 2021.
Also surging on Friday is play-to-earn Axie Infinity’s AXS token. This comes after the Ronin development team – which is funded by Axie Infinity creators Sky Mavis – tweeted Thursday that it plans to reopen its bridge next week.
In March, Ronin, the Ethereum-linked sidechain, suffered a $600 million hack. The network witnessed a loss of $625 million in USDC and ether (ETH).
The team has promised to reimburse all users who were affected by the exploit after the reopening of the bridge.
It is not clear whether the AXS price surge is related to the news, because the announcement happened Thursday and the price increase began early Friday morning.
The token peaked at $17.30 after trading at around $14 on Thursday.
By Aoyon Ashraf
Coinbase Launches First Crypto Derivatives Product Aimed at Retail Traders
Coinbase Derivatives Exchange, formerly known as FairX, is launching its first crypto derivatives product this month, hoping to attract more retail traders.
The Commodity Futures Trading Commission-regulated futures exchange will launch its derivatives product, Nano Bitcoin futures (BIT), on June 27, according to a statement sent to CoinDesk. “The crypto derivatives market represents $3T in volume worldwide and we believe that additional product development and accessibility will unlock significant growth,” the statement said.
Coinbase said it's also awaiting regulatory approval on its own futures commission merchant (FCM) license to offer margined futures contracts for its clients.
Coinbase bought FairX earlier this year to launch crypto derivatives products. FairX launched its futures exchange platform in May 2021 after receiving regulatory approvals in late 2020.
Futures contracts are smaller in size, require less up-front capital than traditional bitcoin futures products and can be used as a hedge for trading strategies for both institutional and retail traders. “At 1/100th of the size of a Bitcoin, it requires less up-front capital than traditional futures products and creates a real opportunity for significant expansion of retail participation in US regulated crypto futures markets,” according to the statement.
However, not everyone sees derivatives as a product suitable for retail traders.
Read the full story here: Coinbase Launches First Crypto Derivatives Product Aimed at Retail Traders
- Convex Finance Sets Up New URLs After Website Address Is Hijacked At least five wallets were affected in the front-end exploit. No funds on verified contracts were exploited.
- Digital Toy Platform Cryptoys Raises $23M From a16z, Dapper Labs, Mattel The company recently secured a partnership with toy manufacturing giant Mattel to transform some of its most famous products into playable avatars, which can be sold as NFTs.
- THORChain Mainnet Goes Live on Seven Networks; RUNE Spikes The much-awaited network went live after nearly four years of development.
- Harmony Ropes in FBI After Losing $100M in Exploit; ONE Token Slumps Developers said they are working with national authorities and forensic specialists to identify the culprit.
- Coinbase Launches First Crypto Derivatives Product Aimed at Retail Traders Coinbase Derivatives Exchange hopes to capitalize on a market that is $3 trillion in volume worldwide and provide hedging options for traders.
Today’s newsletter was edited by Parikshit Mishra and produced by Stephen Alpher.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.