Dominant cryptocurrency alternate Binance is set to list layer 1 blockchain SEI Community’s native token SEI on Aug. 15. As of now, merchants see SEI altering arms at 26 cents instantly after the debut, information from decentralized alternate Aevo’s pre-listing futures present.
Aevo’s pre-listing futures market debuted on Wednesday with SEI contracts, permitting merchants to invest on the potential post-listing worth of the cryptocurrency. The product is analogous to IOU futures supplied by some exchanges.
“The pre-launch futures enhance worth discovery as customers can go each lengthy or quick,” Aevo’s Co-founder and CEO Julian Koh informed CoinDesk.
SEI’s circulating provide upon itemizing shall be 1.8 billion or 18% of the full provide of 10 billion, per Binance. So, at an early worth of 26 cents, the cryptocurrency may have a market cap of $486 million and rank among the many high 100 cryptocurrencies. As of now, SEI isn’t obtainable for buying and selling on any cryptocurrency alternate, in keeping with information tracked by Coingecko.
As soon as the cryptocurrency goes stay on Binance, the pre-listing futures will begin referencing the index worth and cost funding charges to merchants to maintain costs aligned with the spot market worth.
In different phrase, the pre-listing futures will grow to be perpetual swaps after the alternate itemizing. Funding charges are periodic funds by bullish lengthy or bearish quick place holders. Longs pay shorts when perpetuals commerce at a premium to the spot worth. In the meantime, shorts pay longs to maintain their bearish bets open when perpetuals commerce at a reduction.
Aevo has put strict place limits and open curiosity caps in these markets, contemplating the experimental nature of the product. The futures are margined and settled within the dollar-pegged stablecoins USDC.