Binance is preparing to welcome SEI Network’s native token, SEI, to its comprehensive crypto listings come Aug. 15. Currently, anticipatory traders have directed their speculative eye to decentralized exchange Aevo’s nascent pre-listing futures market, making advantageous moves as SEI exchanges hands at approximately 26 cents.
According to Julian Koh, Aevo’s Co-founder, and CEO, the implementation of pre-listing futures for SEI enhances price discovery by encouraging market players to engage in both long and short trades. The approach is akin to IOU futures that a handful of exchanges have made available for traders.
Upon its listing, SEI’s circulating supply will debut at 1.8 billion, a figure representing 18% of the total spoils of 10 billion. Valued at an early rate of 26 cents per token, SEI will claim a market cap close to $486 million, propelling it to the top 100 cryptocurrencies list, this per Binance data. While SEI awaits its introduction to the crypto marketplace, it remains unlisted on cryptocurrency exchanges according to Coingecko information.
Once the crypto wild comes alive with SEI on Binance, pre-listing futures will pivot their focus to the index price, imposing funding rates on traders for price alignment with the spot market value. This adjustment will transform the pre-listing futures into perpetual swaps following the exchange listing. Periodical payments are required by both bullish (long) or bearish (short) position holders, with those going long paying the shorts when perpetuals are trading at a premium compared to spot prices. At the same time, those going short must pay the longs when perpetuals are trading at a discount, maintaining their position.
Due to the speculative and unpredictable nature of this product, Aevo has imposed stringent position limits and open interest caps in these markets. Consequently, the futures are margined and settled, with dollar-pegged stablecoin USDC serving as the underlying asset.
Yet amidst the promising launch and bullish market trends, it’s crucial to remember that future performances of assets like SEI cannot be wholly predicted from their initial post-launch price trajectories, thus underscoring the importance of a calculated and strategic approach to these innovative crypto maneuvers.
Article edited by Parikshit Mishra.
Source: Coindesk
