Kraken Expands Margin Trading Options with ICP, PEPE, SHIB, and WIF

The platform’s creators at Kraken are integrating margin pairs, but they only reveal the specifics after launch. Well-known cryptocurrency exchange Kraken has revealed plans to increase the number of tokens available for margin trading, including some intriguing new additions. This action is in response to traders looking for increased returns (and dangers) on these assets during the meme coin frenzy sweeping the cryptocurrency market.

Traders can Currently Trade Four Coins on Margin

Internet Computer (ICP)

Since its introduction in 2021, ICP has shown substantial price volatility, although it is not precisely a meme coin. With margin trading, investors can increase their profits—or losses—on changes in the price of ICP.

Pepe (PEPE)

This meme coin, inspired by the internet frog emblem, was introduced in April 2023 and quickly acquired popularity. PEPE is here to stay, as indicated by Kraken’s listing, and margin trading allows for more aggressive plays on its price.

Shiba Inu (SHIB)

The availability of margin trading on Kraken gives SHIB, the original meme coin, even more credibility. For those prepared to assume a little bit more risk, this well-liked token with a Dogecoin influence now has the potential to yield increased rewards.

DogWifHat (WIF)

Another meme currency with a devoted following, but one less well-known than the others. Kraken’s margin trading feature makes WIF more widely known while facilitating more calculated trading of this meme-based asset.

It’s significant to note that Kraken has limited leverage for all newly listed margin pairings to 3x. This implies that traders can increase their prospective profits (or losses) by borrowing up to double their initial investment. But Kraken also caps positions, likely reducing too risky trading. Although further information is unavailable, people can still learn more about these caps by visiting the Kraken blog.

Analysts are split on the ramifications of this action. Some believe it to be a dangerous bet, especially for meme coins whose volatile prices are well-known. They caution that using leverage might worsen losses, particularly for novice traders. Some see it as an indication of a developing meme currency market that will provide these hitherto light traders with more advanced trading alternatives.

Also read: Robinhood Connect is now Available for Fast Cryptocurrency Purchases on Uniswap Wallet