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BitMEX Exchange Launches Meme Coin Basket Index

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BitMEX Exchange Launches Meme Coin Basket Index

BitMEX Exchange Launches Meme Coin Basket Index

On Thursday, BitMEX Exchange introduced its version of an S&P 500 index tailored for meme coins, making it the second major platform to offer such a basket index in 2024.

As cryptocurrency adoption rises, meme coins are gaining prominence. However, this development coincides with a significant downturn in the sector, with several altcoins experiencing double-digit losses.

BitMEX Unveils Meme Basket Index Perpetual Contract

BitMEX Exchange Launches Meme Coin Basket Index

BitMEX has named its new MEMEMEXTUSDT contract the “S&P 500 for crypto memecoins.” This contract, margined in Tether’s USDT stablecoin, offers up to 25X leverage. Similar to the S&P 500, which tracks large-cap US stocks, this index will monitor and provide exposure to leading meme coins.

“Users can bet on the overall performance of the assets in one go, rather than holding individual tokens,” BitMEX explained in their announcement. “By trading the contract, you get exposure to the entire basket of meme coins in our Meme Basket Index, without having to hold any of the individual tokens.”

The top meme coins included in this index are Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), Dogecoin (DOGE), and Bonk Inu (BONK), along with FLOKI, BRETT, BOME, MEME, and MOG. The selection is based on a weighted methodology considering market share and value metrics.

This launch follows just two months after VanEck, an investment firm, introduced its MEMECOIN Index, known as MemeVector, which tracks the first five tokens mentioned by BitMEX. VanEck clarified that “Coins are intended for entertainment purposes,” reflecting the traditional skepticism towards meme coins, often viewed as lacking fundamental value.

However, some traders argue that meme coins represent a unique form of speculative liquidity. “Meme coins may seem unconventional, but they highlight the power of community in crypto,” noted Justin Sun, founder of Tron and advisor to Huobi Global, at Token2049.

Meme Coins Enter the Mainstream

Despite their volatility and susceptibility to market sentiment, meme coins have steadily gained traction in 2024. This momentum was catalyzed by the Avalanche Foundation’s December initiative to support culturally significant projects.

“The Avalanche Foundation aims to use Culture Catalyst to celebrate and promote the culture and fun represented by meme coins by purchasing select Avalanche-based meme coins to build a collection,” the Foundation announced. This initiative complements their ongoing efforts in the broader Avalanche ecosystem, including NFTs, RWAs, and other crypto assets, enhancing their portfolio’s diversity.

This commitment by the Avalanche Foundation has legitimized meme coins as a distinct cryptocurrency niche. Analysts predict that this sector could spearhead the next altcoin season.

The recent launches by VanEck and BitMEX are pivotal in advancing this niche. As meme coin adoption grows, even conservative investors might venture into this space, much like how Bitcoin spot ETFs introduced BTC to Wall Street.

“Retail investors are drawn to meme coins because they offer opportunities similar to venture capitalists during seed, pre-seed, and private sale rounds,” explained Jonas Dovydaitis, Co-Founder & CEO of PAiT, to BeInCrypto.

Currently, the meme coin market is experiencing a downturn, with its capitalization dropping nearly 9% to $42 trillion amid a broader market crash led by Bitcoin, which has fallen 5% to $57,459 at the time of writing.

BitMEX Exchange Launches Meme Coin Basket Index

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