Overview
- Coinbase rolled out the new pre‑IPO perpetual futures on Thursday, June 4, debuting with a SpaceX contract that offers up to 5x leverage, settles in USDC, has no expiry and will automatically convert into a standard SpaceX perpetual at the IPO.
- The product is available only to eligible users outside the United States and is offered through offshore and regional Coinbase entities with access blocked in jurisdictions including Canada, the UK, Singapore, India and Australia.
- Coinbase warned the contracts rely on valuation‑based index pricing and face IPO‑conversion and low‑liquidity risks that can cause large price swings and liquidations.
- A recent platform failure illustrates those dangers: Ventuals briefly lost about 45% on its SpaceX‑linked contract after incorrect oracle pricing fed the market, triggering liquidations and compensation for affected traders.
- The SpaceX IPO is targeting about $135 a share for a roughly $1.75 trillion valuation with listings expected in mid‑June, and index providers and regulators are already weighing the market‑structure and cross‑border investor‑protection issues these pre‑IPO derivatives raise as other exchanges launch similar products.