BitMEX Introduces Meme Coin Basket Index

UTC by Mayowa Adebajo · 3 min read
BitMEX Introduces Meme Coin Basket Index
Photo: Depositphotos

By offering a single-instrument solution, BitMEX aims to reduce this complexity to the barest minimum possible.

Leading crypto derivatives exchange BitMEX has just launched a product in hopes of simplifying meme coin trading. The MEMEMEXTUSDT Basket Index Perpetual Swap Contract offers traders exposure to the top 10 meme coins by market capitalization through a single contract.

BitMEX Meme Coin Basket Index to Track Top 10 Meme Coins

According to BitMEX, the index is designed as a weighted average price of the market’s leading 10 meme coins. However, the constituents are rebalanced monthly to ensure that the index is always made up of only the best-performing assets at a time. This contract is a USDT-margined linear perpetual swap that can give traders up to 25x leverage.

Speaking about the benefits that this new product brings, BitMEX CEO Stephan Lutz says it opens up access for traders to latch on the latest market trends without much risk. Lutz said in a statement:

“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.”

Simplified Trading and Enhanced Liquidity

Notably, meme coin trading comes with its perks. It is often associated with complexities of various kinds. However, by offering a single-instrument solution, BitMEX aims to reduce this complexity to the barest minimum possible.

To see this ambition through, the MEMEMEXTUSDT contract has been designed to function similarly to the S&P 500, with the only difference being its focus on the volatile meme coin market.

BitMEX claims that this design will not only simplify the trading process but also improve liquidity by allowing traders to execute their trades at more favorable prices.

In a Thursday press release, BitMEX noted that the MEMEMEXTUSDT contract is a trading solution that allows participants to manage their investments in the memecoin sector in a way that’s more efficient than ever before.

Detailed Contract Specifications

The MEMEMEXTUSDT contract will be denoted by the symbol “MEMEMEXTUSDT,” while its margin currency is Tether’s USDT. Each contract is worth 0.0001 MEMEMEXT, with the lot size fixed at 1000. The maker and taker fees are -0.015% and 0.075% respectively. In terms of margin requirement, 4% is needed as the base initial margin, while the base maintenance margin is 2%.

Notably, BitMEX has taken it a step even further to celebrate the launch of its new product. The exchange is offering incentives to boost trading activity. That is, by floating a prize pool of up to $10,000 in USDT for traders who use the MEMEMEXTUSDT contract. The top users will share the generous prize, and so it is expected to draw more attention to the product.

This new offering follows BitMEX’s recent introduction of very high leverage options of over 200x for its perpetual swaps. With these innovations, the platform continues to showcase its commitment to providing advanced and flexible trading solutions for its users.

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