Cryptocurrency trading platform Binance made a surprise entry into the Shiba coin this month. It inserted the fiat token into its “innovation zone” and added the corresponding permanent contracts to its futures platform.
According to the description, Binance’s innovation zone is a “dedicated trading area where users can trade new and innovative tokens that have higher volatility and pose higher risks.”
The Binance platform also warned all potential traders,
“SHIB is a relatively new symbol that represents a higher risk than usual, and as such, is likely to be subject to increased price fluctuations after being included in the Binance platform. Please ensure that you exercise adequate risk management and do your research regarding the basics. Shiba coin, and fully understand the project before choosing to trade the token.”
The Shiba coin, described by its developers as a “Dug Coin destroyer” and designed to resemble its “predecessor” as possible – has quickly risen to prominence over the past few days in the wake of the continuous price hike Dogecoin. Among other things, Shiba proponents are currently trying to push the token as the “next best thing” for people who missed the dog-coin hype train.
The price of the Shiba coin rose from $0.00000006 in early April to an all-time high of $0.00003671 today, according to Coin Market Cap – a staggering increase of over 61,000% in just over 30 days.
Following its listing on Binance, the SHIB’s price has fallen to around $ 0.000029 at the time of publication. However, the token is still up roughly 110% in the day and over 1,600% over the past week. The recent craze has also pushed the total market cap of Shiba to over $12 billion, making it the 17th largest cryptocurrency.
Binance also launched 1000SHIB, permanent futures contracts with a margin of USDT with a leverage of up to 25X.
The SHIB 1000 permanent futures contracts are futures contracts that use USDT as collateral. The face value of the 1000 SHIBUSDT contracts is 1000 SHIB each. The exchange explained that the benchmark price of 1,000SHIBUSDT is 1,000 times the SHIB/USDT spot index price.
A futures contract is a type of financial derivative contract that allows users to trade a specific asset at a predetermined price on a particular date in the future. Essentially, traders can bet on upcoming price movements by setting the “strike price” of the asset. If the actual market price is higher when the futures contract expires, the seller is making a profit – and vice versa. In contrast, permanent futures contracts primarily work the same way but do not have an expiration date, which means that traders can hold their positions indefinitely.
Meanwhile, the trading craze surrounding the Sheba coin continues to astound even some of the cryptocurrency industry’s veterans.
EthHub co-founder Anthony Sasano sarcastically tweeted, “276 days ago, someone put 10 ETH into SHIB, and now it’s $460 million. How’s your life going?” As it turns out, this is a far cry from SHIB’s most considerable profit yet.