Major tier 1 exchanges like Binance and Coinbase have been listing Kaspa in their futures markets while keeping it off their spot markets. Binance listed Kaspa futures last year and even ran a mining promotion with a total bonus pool of 88,000 KAS tokens, incentivizing miners to participate. More recently, Coinbase announced that it will list Kaspa perpetual futures starting on February 20, 2025, yet no spot listing has been mentioned. This raises a key question—why can you trade Kaspa with leverage but not simply buy and hold it like Bitcoin or Ethereum? Let’s break it down.
Why Futures First?
There are a few solid reasons why Binance and Coinbase might prefer listing futures contracts before spot trading:
- Risk and Liquidity Management: Running a spot market requires deep liquidity and steady trading activity. Binance and Coinbase may not have enough liquidity to meet the demand and use futures as a way to test market interest before fully committing to spot trading.
- Market Testing: Binance and Coinbase gauge demand through futures contracts. If a futures market sees strong volume and open interest, it signals that traders are eager to trade the asset—this can help exchanges decide whether a spot listing is worth it.
- Potential Price Suppression: The exchanges might be intentionally keeping Kaspa off spot markets to suppress its price. By listing only futures, Binance and Coinbase allow short-selling without direct spot accumulation, potentially keeping the price lower while they accumulate Kaspa at a discount before an eventual spot listing.
- More Trading Options: Futures contracts allow for both long and short trades, attracting a different set of traders who might not be interested in simply holding Kaspa. This means futures markets tend to get more action and can be a safer bet for exchanges.
Is a Spot Listing Inevitable?
It’s likely. When an asset gains popularity in futures trading, exchanges often follow up with a spot listing—especially if liquidity and demand remain strong. However, the timing is unpredictable. Some assets move quickly from futures to spot markets, while others linger in the derivatives realm for months or even years.
Final Thoughts
Kaspa’s exclusion from spot markets, despite its presence in futures trading, may indicate that Binance and Coinbase are holding off while they accumulate liquidity or suppress price action to their advantage. Once accumulation phase is over, sufficient demand and trading volume are observed, a spot listing should follow.
