Floki Inu Perpetual on Binance Futures
On Friday, Binance Futures launched a perpetual contract for Floki Inu (FLOKI), a meme-inspired cryptocurrency that competes with the popular Shiba Inu token, based on the Shiba Inu breed of dog.
The perpetual contract, available with up to 20x leverage, started on May 6 at 4:30 p.m. UTC. This move adds more legitimacy to the meme-based cryptocurrency, which has been gaining popularity and market value.
Perpetual contracts are a type of derivative product that enables traders to buy or sell an underlying asset, in this case, Floki Inu, without an expiration date. These contracts closely follow the asset’s spot price, allowing for long or short positions with leverage.
Funding rates are exchanged between long and short positions periodically, usually every eight hours, to keep the contract price in line with the underlying asset’s spot price. This mechanism ensures that the perpetual contract price remains aligned with the actual asset value, despite the lack of an expiration date.
The perpetual contract 1000FLOKIUSDT is settled in Tether (USDT), a stablecoin pegged to the U.S. Dollar, and based on the value of 1,000 FLOKI tokens. It has a tick size of 0.00001 and a capped funding rate, and is open for trading 24/7.
Binance allows users to trade the perpetual contract across multiple margin assets, with applicable haircuts. This implies that traders can use cryptocurrencies like BTC as margin when trading the 1000FLOKIUSDT perpetual contract.
Binance has stated that it may modify the specifications of the 1000FLOKIUSDT perpetual contract based on market risk conditions. Such changes could include the tick size, maximum leverage, initial margin, or maintenance margin requirements.
To access the announcement: binance.com
To access more crypto news: cryptodataspace.com
About Floki Inu
Floki Inu is a meme-inspired cryptocurrency named after the character Floki from the television show “Vikings.” It was launched in June 2021 as a competitor to the popular Shiba Inu token, which itself was created as a joke based on the Shiba Inu breed of dog.
Floki Inu features a decentralized ecosystem with a supply of one quadrillion tokens and utilizes a proof-of-stake consensus mechanism. It aims to develop a platform for decentralized applications and offer users a variety of decentralized finance services. While the project is still in its early stages, it has gained a significant following and is listed on several prominent cryptocurrency exchanges.
