Mar 22, 2024
The crypto market is currently buzzing with excitement as meme coins, typically known for their volatility and speculative nature, are making significant strides. In a surprising turn of events, the realm of cryptocurrencies might soon witness a leap in credibility.
This is evident in the potential introduction of Dogecoin (DOGE) futures contracts, a token that epitomises the meme coin genre, through a platform regulated by the US Commodity Futures Trading Commission (CFTC).
For those who might not be fully in the loop, meme coins, including Dogecoin, generally lack intrinsic functional value and are often propelled by a wave of social media hype and the allure of potential profits.
In a recent yet under-the-radar move, Coinbase Derivatives LLC submitted filings to the CFTC on March 7th, seeking approval to list futures contracts for Dogecoin, along with Litecoin and Bitcoin Cash. If the CFTC does not object, these futures could start trading as early as April 1st.
This development marks a significant milestone, especially for Dogecoin, which unlike Litecoin or Bitcoin Cash, doesn't have a cap on its supply. With approximately 140 billion Dogecoin tokens in circulation and more being added constantly, each Dogecoin block mined brings an additional reward of 10,000 DOGE.
Coinbase's proposed Dogecoin futures contracts, each covering 5,000 DOGE and settled monthly, could bring a new level of legitimacy and structure to the trading of this once-casual token.
While the potential of spot Bitcoin ETFs has already raised expectations of greater legitimacy across the crypto spectrum, the arrival of Dogecoin futures isn't guaranteed yet. Although the CFTC has shown a more flexible attitude towards cryptocurrencies compared to the SEC's stricter approach, it still has the authority to raise objections at the last minute.
In another related development, the SEC's decision on approving spot Ethereum ETFs by May is currently deemed to have only a 25% likelihood of happening. The SEC is reportedly considering classifying Ethereum as a security, which could further complicate matters.
Interestingly, Elon Musk, once a major influencer on Dogecoin's market value, might see his impact diminish if these futures contracts become a reality. This could shift the focus from individual influencers to institutional adoption, signalling a maturing of the market around meme tokens like Dogecoin.
