The FTX crypto derivatives platform has integrated an index to track coins with a low market cap, the SHIT-PERP (Shitcoin Index Perpetual Futures).
This index includes a total of 58 low capitalisation cryptocurrencies and includes, among others, Wave, Grin and Nano. Here is the complete list.
Although the name may be misleading, this is a real product offered by the FTX platform, where the user can interact with many different cryptocurrencies and engage in buying or selling depending on the performance of the index.
The CMO, Darren Wong, explained the possible scenarios for the trader:
- If you want exposure to a particular initial coin offering, but not the general industry, you can short SHIT-PERP. By shorting the greater alt market, you hedge your bets and limit your downside.
- If you want to short low market cap altcoins in general, you can use SHIT-PERP. The indexed future is one of few ways to short low cap alt markets.
- If you think bitcoin’s dominance is too high, you can buy all three of FTX’s altcoin futures indexes and sell BTC-PERP, the platforms Bitcoin futures index.
The FTX platform has followed the Alameda Research incubation program allowing the opening of this crypto platform with the Shitcoin Index and to manage an OTC (Over The Counter) desk, futures, indices and recently also spot and margin trading. In fact, Alameda itself provides the necessary liquidity to the structure, boasting over $100 million in digital assets.