Shiba Inu Competitor Floki Inu Joins Binance Futures

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Binance Futures announced on Friday the launch of a new perpetual contract for Floki Inu (FLOKI), a meme cryptocurrency inspired by the Shiba Inu breed of dog and a competitor to the popular Shiba Inu token.

The perpetual contract, which offers up to 20x leverage, went live at 4:30 p.m. UTC on May 6. This move adds further legitimacy to the meme-based cryptocurrency, which has been growing in popularity and market value.

Perpetual contracts are a type of derivative product that allows traders to buy or sell an underlying asset, in this case Floki Inu, without an expiration date. These contracts closely track the spot price of the asset, facilitating long or short positions with leverage.

Funding rates are periodically exchanged between long and short positions, typically every eight hours, to keep the contract’s price close to the underlying asset’s spot price. This mechanism ensures that the perpetual contract price remains in line with the actual asset value, even though there is no expiry date.

The 1000FLOKIUSDT perpetual contract is based on the value of 1,000 FLOKI tokens and is settled in Tether (USDT), a stablecoin pegged to the U.S. Dollar. With a tick size of 0.00001, the contract features a capped funding rate and is available for trading 24/7.

Binance has implemented a multi-assets mode, allowing users to trade the perpetual contract across multiple margin assets, subject to applicable haircuts. This means traders can use cryptocurrencies like BTC as margin when trading the 1000FLOKIUSDT perpetual contract.

The crypto behemoth has also stated that based on market risk conditions, it may adjust the specifications of the 1000FLOKIUSDT perpetual contract from time to time. This could include changes to the tick size, maximum leverage, initial margin, or maintenance margin requirements.