58COIN Platform Status and Historical Background
58COIN was once a platform in the cryptocurrency market that offered perpetual contract trading services. According to historical data, as of September 2020, it was the second trading platform globally to introduce an index mechanism, focusing on perpetual contract products. However, it is important to note that 58COIN ceased operations in recent years and currently has no active trading market. Therefore, the contract index reference platforms and calculation rules discussed in this article are based on the platform's historical operational period.
Historical Reference Platforms for 58COIN Contract Index
During 58COIN's operation, the index price used for its contract products primarily referenced several mainstream cryptocurrency trading platforms at the time. These platforms included:
- OKX (formerly OKEX)
- HTX (formerly Huobi)
- Binance
By integrating the spot prices from these leading exchanges, 58COIN aimed to construct a relatively stable and fair index to reduce the impact of abnormal price fluctuations from a single platform on contract trading.
General Calculation Rules for Contract Indices
While the specific index calculation formula for 58COIN can no longer be traced, based on common industry practices and the general approaches of mainstream exchanges, contract index calculations typically follow these principles:
- Multi-market weighted average: The index price is typically calculated as a weighted average of prices from multiple major spot markets. This method effectively prevents price manipulation due to abnormal trading or insufficient liquidity in a single market, thereby providing a more representative market price.
- Consideration of spot prices and USDT pairings: The calculation process comprehensively considers the spot prices from various reference platforms, especially the prices of trading pairs with USD stablecoins (such as USDT), to ensure price anchoring.
- Real-time weight adjustment: The weights of each reference platform are usually adjusted in real-time or periodically based on factors such as their trading volume, liquidity, or market depth. Platforms with larger trading volumes are often given higher weights to reflect their influence on market prices.
- Mark Price: In perpetual contract trading, in addition to the index price, a mark price is also introduced. The mark price typically consists of the price index and the moving average basis (Funding Basis), primarily used to calculate users' unrealized profit and loss and liquidation risk, to avoid irrational liquidations caused by drastic market fluctuations.
During its operation, 58COIN also emphasized that its contract products used a fixed, industry-low maintenance margin rate and had a contract risk fund (historical data once showed over 50,000 BTC) to protect users and reduce the triggering of auto-deleveraging. These measures were the platform's efforts at the time to enhance user trust and trading experience.
Market Status Statement
Currently, there are no reliable active trading channels for this token.
