While there is no official Ethereum PoW coin around, derivatives trading platforms are ready to offer access to leveraged tokens
Ethereum is getting closer to its fundamental Merge update, which is why various platforms are getting ready to cover the demand of retail or even institutional investors that will expose themselves to an alternative version of the second biggest cryptocurrency on the market with a PoW consensus algorithm.
Previously, the BitMEX Research team explored the possibility of a chain split on the Ether network that could cause the creation of a new ETH PoW coin that will be also available for trading by other users.
BitMex decided to become one of the first crypto derivatives providers to offer leverage trading for Ethereum PoW tokens, with ETHPOWZ22 going live tomorrow and now available on the testnet for anyone who is willing to “play with it” prior to real trading.
According to the press release, when USDT ERC-20 goes live, users will be able to trade with up to 2x leverage. An important disclosure is the fact that ETHPOW does not exist yet and might never appear on the market, which is why traders should remain cautious when trading the asset, especially when using leverage.
To safeguard investors from speculation, the platform is using the Last Price marking because of the absence of a spot ETHPOW coin on the market. Traders will not be able to place orders above or below the 20% limit from the Mark Price.
Traders should also keep in mind that the contract might become a subject of a deleveraging considering its purely speculative nature. With the deleveraging, traders will not be able to use the margin.
At press time, Ethereum is moving calmly and continuously up on the market, reaching closer to the $1,800 threshold.