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Crypto exchanges cash in on SpaceX frenzy with pre-IPO derivatives
Before SpaceX goes public, crypto exchanges are giving traders a way to make risky bets on the company's future share price. Billions of dollars have flowed into instruments dubbed "pre-IPO perpetual futures", which have no direct link to the underlying shares but are priced with reference to SpaceX's latest disclosed pre-IPO valuation. These types of derivatives, known as "perps", are already used to bet on cryptocurrency price moves. They roll over indefinitely and allow investors to borrow in order to make bigger bets. The popularity of new pre-IPO perps - which trade on exchanges including Binance, Coinbase ... (full story)