Looking for more drama in the crypto world? Coinbase has just submitted an application to provide Solana (SOL) and Hedera (HBAR) futures. Yep, you read that; the nice people at Coinbase are planning to allow you to go all-in (or negative) on two of the most discussed layer-1 blockchains available.
So, Why Should We Care?
As the 100x community knows, it is our passion to be where the action is in the crypto world and try to gain every possible advantage. It is therefore important to have futures on SOL and HBAR since it means more ways of increasing the returns or reducing the risk. Solana has been on an upward climb due to the high speed of its transactions while Hedera has its own unique hashgraph technology. Now with the possibility of a futures market, you can go long or short on these networks – ride on the hype or short the price when the fear, uncertainty, and doubt (FUD) starts to appear.
Coinbase Making Moves
Coinbase is not a new company, and it has always been an innovator. From submitting the formal documentation, they are saying, “We believe that SOL and HBAR have enough market depth to support futures.” In laymen terms, these blockchains are capturing the attention of liquidity, and users to support derivatives trading.
- Regulatory Game: If the SEC gives a thumbs-up, that’s one more step toward mainstream acceptance for both SOL and HBAR.
- New Liquidity: Futures increase market depth, which is usually a good thing that results in tighter bid-ask spreads and more price volatility — if that’s your thing.
The Bigger Picture: Futures = Mainstream Cred
We have, of course, observed futures for the big brands like Bitcoin and Ethereum. But Solana and Hedera are still fairly new to this world, meaning that allowing their futures trading is a clear indication that these projects are moving beyond the ‘new and promising altcoin’ stage. It’s like they have moved up to the next level in the entire cryptocurrency hierarchy.
More importantly, futures can attract the institutional investors who are looking to manage their risks or who are simply looking to find another way to invest in these networks. If the suits think these projects are worth their time, then watch for fresh injections of capital to follow.
Hype vs. Reality
Let’s keep it real:
- Network Congestion: Solana has not been without its issues, and Hedera is still building its base. The hype train can come to a screeching halt if either network runs into serious issues.
- Volatility: Futures markets tend to amplify the volatility, especially for the smaller cap tokens as compared to BTC or ETH. Great for adrenaline junkies… but not for those who have no stomach for the ride.
Final Thoughts for 100x
At 100x, we are always ready to grab the opportunity. The move by Coinbase to trade Solana and Hedera futures may well open up the P&E (purchase and export) of some great trades – except that the market will tend to be more volatile. If you know how to play your cards right, there could be some great earnings to be made.
However, as with any opportunity, there are more opportunities available with greater risks. Don’t invest blindly. Watch the regulatory environment, monitor network development and stick to your strategy. Because, in the crypto world, it’s not only about getting your share of the discounts or kicks – it’s about keeping the steering when the road gets bumpy.
Stay alert, folks. This show is only going to get more interesting.
