Crypto.com’s US derivatives exchange, Nadex, has listed four derivatives linked to memecoins including PEPE, FLOKI, Dogelon Mars (ELON) and BONK.
CoinMarketCap reveals that the total market capitalization of the four memecoins underlying Nadex’s contracts is nearly $7 billion. These “touch bracket” derivatives contracts are hedging tools that help to pay out if a token’s spot price hits an agreed-upon ceiling or floor before the contract expires.
According to Oct. 7 filings with the United States Commodity Futures Trading Commission (CFTC), “Touch Bracket Contracts are not only quite popular in markets with high volatility, such as the cryptocurrency markets, but due to their unique structure, inherently minimize the possibility of contract manipulation.”
The options haven’t received approval from agencies like the CFTC as these self-certified derivatives do not need explicit regulatory approval before listing.
Nadex’s existing cryptocurrency derivatives products include contracts tied to Bitcoin.
The total trading volumes for Nadex contracts tied to BTC, ETH, and Litecoin in 2023 was more than 28 million contracts.
“Therefore, the Exchange continues to expand its cryptocurrency commodity derivative product offerings to meet public demand for diverse and regulated products,” Nadex said.
Recently another derivatives exchange, Kalshi was finally able to list event contracts for betting on US election results after winning in a litigation against the CFTC in September.