XRP traders on Gemini now have an opportunity to extend their exposure to the cryptocurrency, as the U.S.-based exchange officially launches XRP perpetual contracts.
Gemini has finally unveiled the reason behind its latest social campaign around XRP. The exchange disclosed in a post on X this morning that it plans to launch perpetual contracts for XRP.
Gemini to Launch XRP Perpetual Contracts
Notably, the introduction of XRP perpetual contracts offers traders the ability to go beyond spot trading by allowing them to use leverage. Being perpetual contracts, traders can continue to hold their positions without any expiration date as long as they can cover their margin.
Riddle answer: XRP perpetual contracts
Coming soon to Gemini
Fund your account → https://t.co/Ap4YOQIyO3 pic.twitter.com/pPfJwDnGTk
— Gemini (@Gemini) January 23, 2024
As a result of this, Gemini traders can amplify their positions, potentially magnifying their gains as well as their losses by trading the contracts on the Gemini Derivatives platform. However, Gemini has confirmed that the platform is not available in the U.S., U.K. and the European Union.
The recent development comes less than six months after Gemini introduced spot trading for XRP in the wake of an official listing.
Recall that the exchange, which never supported XRP trading, listed the asset for the first time in August 2023, a few weeks after XRP gained legal clarity.
Prior to the listing announcement, the Gemini team initiated a social campaign around XRP, leading to speculation on a potential listing, which materialized a few days after the campaign. The launch of the XRP perpetual contracts also followed a similar social campaign.
Gemini’s XRP Social Campaign
The Crypto Basic called attention to this move in a series of reports. At the start, the official Gemini X account made three cryptic posts on XRP, charging the broader community not to forget XRP and hinting at an imminent development for the asset.
Amid the mentions, certain influential figures within the XRP community triggered speculations on what the development could be.
For instance, Eri, a prominent XRP community figure, asserted that the development could center around a Gemini joint venture for an XRP ETF in Europe.
Shortly after the posts, Gemini presented a riddle which pointed to XRP. Their latest announcement confirmed that the answer to the riddle is the XRP perpetual contract.
While the launch of the perpetual contracts is an encouraging move, expectations were higher due to the nature of the social campaign.
As a result, some XRP community members have expressed their disappointment. Others believe it is indeed a pivotal development.
Reacting to the announcement, Zach Rector, a notable media personality, claimed exchanges were only interested in the XRP community and their business.
Recall that Bitstamp also ignited a similar hype around XRP last August, with community members anticipating a pivotal announcement. However, disappointment filled the scene when the exchange only announced a lending program for XRP with 2% APY.
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