TLDR
- BitMEX has launched the MEMEMEXTUSDT Basket Index Perpetual Swap Contract.
- The index tracks the top 10 memecoins by market capitalization.
- It offers traders exposure to multiple memecoins through a single contract.
- The index is rebalanced monthly to reflect the best-performing memecoins.
- The contract offers up to 25x leverage and is USDT-margined.
BitMEX, a leading cryptocurrency derivatives exchange, has introduced a novel product to capitalize on the growing popularity of memecoins.
On Thursday, July 4, the exchange launched the MEMEMEXTUSDT Basket Index Perpetual Swap Contract, offering traders a unique way to gain exposure to the top 10 memecoins in the market through a single instrument.
Introducing the BitMEX Meme Basket Index Perp – the S&P500 for crypto memecoins. It’s your gateway to get exposure to all the top meme coins at once, like $PEPE, $SHIB, $WIF, $DOGE, and $BONK.
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3.… pic.twitter.com/S3IK9rhGyc— BitMEX (@BitMEX) July 4, 2024
This new product is designed to simplify memecoin trading by providing a comprehensive contract that functions similarly to the S&P 500 index, but for crypto memecoins.
The BitMEX memecoin basket index is constructed as a weighted average price of the top 10 memecoins by market capitalization, with the constituents rebalanced monthly to ensure it continues to track the best-performing memecoins in this volatile sector.
BitMEX CEO Stephan Lutz explained the rationale behind the new offering:
“The MEMEMEXTUSDT perpetual swap allows traders to easily diversify their exposure across the top memecoins and capitalize on the latest market trends – all while managing risks effectively.”
This approach addresses the challenges faced by traders in navigating the often overwhelming and rapidly changing memecoin landscape.
The MEMEMEXTUSDT contract is a USDT-margined linear perpetual swap that offers up to 25x leverage. Its specifications include a maker fee of -0.015% and a taker fee of 0.075%, with a base initial margin of 4.00% and a base maintenance margin of 2.00%. Each contract represents 0.0001 MEMEMEXT, with a lot size of 1000.
One of the key advantages of this basket index is its potential to improve liquidity. By consolidating multiple memecoins into a single index, BitMEX aims to enable traders to execute their trades at more favorable prices. This feature could be particularly attractive to retail traders who are cautious about the high volatility often associated with individual memecoins.
The launch of this product comes at a time when memecoins have seen significant growth and interest from the crypto community.
The current memecoin market cap stands at approximately $42.5 billion, with the top 10 memecoins accounting for over $35 billion of this total. Popular memecoins like Dogecoin, Shiba Inu, Pepe, Dogwifhat, and Bonk are among those included in the index.
To celebrate the launch, BitMEX is offering a prize pool of up to $10,000 in USDT to traders who utilize the MEMEMEXTUSDT contract.
The exchange has set up three reward categories, including one for the first 400 traders who achieve a minimum of $50,000 in trading volume, another for the top 10 traders in a top 50 leaderboard, and a third for verified users who deposit at least $1,000 and trade a minimum of $10,000.
This new product launch is part of BitMEX’s ongoing strategy to expand its range of trading products and cater to evolving market demands. It follows other recent initiatives by the exchange, such as the introduction of BitMEX Options and a Bitcoin perpetual swap offering up to 250x leverage.
