Crypto.com’s Exchange Nadex Lists 4 Memecoins Derivatives

Crypto.com’s Exchange Nadex has added four memecoins derivatives to its platform. The memecoins listed are PEPE, FLOKI, Dogelon Mars (ELON), and BONK, with a combined market capitalization of nearly $7 billion. These derivatives, known as “touch bracket” contracts, act as hedging tools that payout when a token’s spot price reaches a predetermined floor or ceiling before the contract expires. These contracts are popular in volatile markets like cryptocurrencies due to their unique structure, which minimizes the potential for manipulation. While these options have not received explicit regulatory approval from agencies like the U.S. Commodity Futures Trading Commission (CFTC), they do not require such approval as self-certified derivatives. Nadex already offers cryptocurrency derivatives tied to Bitcoin, and the platform’s trading volumes for BTC, ETH, and Litecoin contracts exceeded 28 million in 2023. Nadex stated that it continues to expand its cryptocurrency commodity derivative offerings to meet the growing demand for diverse and regulated products. In a similar vein, another derivatives exchange, Kalshi, recently won a litigation against the CFTC, allowing it to list event contracts for betting on U.S. election results.