Phantom Launches Perpetual Futures Trading
In a significant move within the cryptocurrency landscape, Phantom, a crypto wallet acclaimed for its smooth functionalities with Solana and Ethereum, has launched a new feature enabling perpetual futures trading directly within its mobile application. This development, announced on July 8, marks a crucial step towards addressing the needs of retail traders, a demographic often sidelined by the complexity of existing trading platforms.
Introducing Phantom Perps
The newly introduced Phantom Perps feature allows users to engage in leveraged trading with just a few taps on their smartphones. Users can go long or short in over 100 different markets, all while enjoying up to 40x leverage. Phantom’s design philosophy sets itself apart from traditional derivatives platforms, which frequently bombard users with intricate order books and extensive charting setups. Instead, Phantom opts for a simplified trading experience that is seamlessly integrated alongside users’ NFT assets and token balances.
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Powered by Hyperliquid’s advanced trading infrastructure, the platform enables rapid access to various markets ranging from stalwart cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to more volatile options, including popular meme coins like Dogecoin (DOGE) and Pepe (PEPE). Phantom’s entry into perpetual futures could serve as a critical benchmark for retail engagement in the cryptocurrency domain, especially given that derivatives account for a staggering 75% of overall crypto trading volume.
Advantages and Risks
Despite its user-friendly approach, Phantom’s straightforward mechanism poses both advantages and risks. The trading process is distilled into three simple steps: fund a position using SOL, which is automatically converted to USDC, select a market, and set the desired leverage. This removes the need for bridging assets or managing separate exchange accounts, allowing for a wallet-centric experience.
However, easing access to leveraged trading introduces potential pitfalls. Casual users may inadvertently expose themselves to the inherent risks of derivatives trading, such as liquidation and funding fees. Phantom has issued a cautionary note, particularly highlighting that this new functionality is not accessible in the United Kingdom owing to the Financial Conduct Authority’s stringent regulations on crypto derivatives for retail investors established since 2021. Moreover, other countries with similarly rigorous regulatory environments may soon implement restrictions as well, although Phantom has not yet detailed a comprehensive list of affected regions.
