Coinbase announced their entry into 24/7 Bitcoin and Ethereum futures trading earlier today. With their recent multi-billion dollar acquisition of Deribit, it’s safe to say they’re making waves in the crypto space. Is this a tipping point for mainstream adoption? Or are we just witnessing the expansion of a highly leveraged, never-closing altcoin casino? Though the official narrative makes this development sound like a story of advanced risk management sophistication and institutional maturity, I am a little skeptical. On the contrary, I believe it has the potential of being the match that lights the fuse to something much more explosive.

It’s hard to argue against the appeal of 24/7 open door, everywhere in the world futures trading. After all, who wouldn’t want to be able to react to market movements the very moment they occur—even on weekends? Coinbase is clearly savvy to capitalize on that kind of demand. The relationship with Nodal Clear, a CFTC-regulated clearinghouse, is certainly comforting. Let's be realistic. Greater accessibility to access leverage, particularly at all times of day, magnifies the positive and negative outcomes.

Think about it: the stock market closes. Traditional markets offer breathers. Crypto may never sleep, but neither does the capacity to place huge speculative bets on its future. That’s not to say that’s a bad outcome for experienced traders with strong risk management plans. What of the unsuspecting retail investor, enticed by the siren call of easy money? Are they really ready for the emotional gauntlet race of always-on, deeply-leveraged careers?

Just like Coinbase’s recent acquisition of Deribit for $2.9 billion — that’s a huge chess move right there. It also immediately propels them into the majors of crypto derivatives, right up against Binance’s dominance and perhaps even threatening it. But consider what Deribit is: a platform specializing in options trading. Options are, as a rule, more complicated and therefore more complicated (and more rewarding and risky) than futures.

Enter 24/7 futures, multiplied by the fact that Deribit’s options platform will soon be integrated. What do you get? A turbocharged engine for speculation. This isn’t only happening around Bitcoin and Ethereum. Ramp up the breeding ground for risk-hungry proprietary traders. Allow them to make more and more speculative wagers on the future of just about anything.

Here’s where the “altcoin casino” analogy really kicks in. Though Coinbase’s first futures product will be for BTC and ETH, the infrastructure is already in place to scale Coinbase’s offering into a variety of altcoins. Imagine the possibilities: 24/7 futures and options trading on a basket of smaller, more volatile cryptocurrencies. It's a recipe for extreme price swings.

Oh, and do you guys remember that unsolicited plug for Ruvi AI (RUVI) we included in the original news? The same one promoting a possible 20,000% increase in price? That’s the kind of speculative mania that this brave new world will be all too likely to stoke. Increased accessibility to leverage and derivatives can turn even the most promising altcoin into a pump-and-dump scheme waiting to happen.

Coinbase has been leveraging its regulation by the CFTC as an indicator of its legitimacy and security. It’s true that appropriate regulation enhances investor protection, safety and soundness, transparency and fairness above the profit motive. Never lose sight of the fact that the crypto market is the wild west and changes in a heartbeat. Regulators can be rightfully overwhelmed by the pace of innovation and trends.

Of course, if 24/7 altcoin futures trading results in massive quarter retail losses or market manipulation, regulators will have no choice but to intervene. What remains to be seen is whether they manage to do so in a meaningful way. Will they create space for innovation or will good intentions drive the market underground? The answer surely lies in how responsibly Coinbase treads into this uncharted territory.

I’m certainly not arguing that this specific move by Coinbase is outright evil. In reality, it can be very, very profitable—if you have the right skills to work the market. It’s important to enter this brave new world of 24/7 crypto trading with your eyes wide open. Know what you’re doing. Find out the risks, be cautious when using leverage and beware of the speculative altcoin hype.

  • Potential Winners: Altcoins with strong communities, active development, and real-world use cases could benefit from increased liquidity and exposure.
  • Potential Losers: Meme coins, "shitcoins," and projects with little substance are likely to be the victims of massive volatility and manipulation.

The opportunity for both success and failure has only been heightened. Go out there and take your chances and perhaps, just perhaps, it will happen for you. As we all know, even with a regulated casino, the house always wins. Just like real gambling, it’s on you to outwit the house.

Coinbase is touting its CFTC regulation as a sign of legitimacy and security. And it's true, regulation can provide a level of protection for investors. But let's not forget that the crypto market moves at lightning speed. Regulators often struggle to keep up with the latest innovations and trends.

If 24/7 altcoin futures trading leads to widespread losses and market manipulation, regulators will step in. The question is, will they be able to do so effectively, or will they end up stifling innovation and driving the market underground? The answer likely depends on how responsibly Coinbase manages this new landscape.

A Call for Caution (and Maybe Some Profits)

I'm not saying that Coinbase's move is inherently evil. In fact, it could be incredibly lucrative for those who know how to navigate the market. But it's crucial to approach this new era of 24/7 crypto trading with your eyes wide open. Understand the risks involved, manage your leverage carefully, and don't fall for the hype surrounding speculative altcoins.

The potential for both profit and ruin has just been amplified. Proceed with caution, and maybe, just maybe, you'll come out on top. But remember, even in a regulated casino, the house always has the edge. It's up to you to be smarter than the house.