On 20 August, Kraken revealed that it now supports margin trading for popular meme coin Shiba Inu ($SHIB).
The news was shared through an official blog post from Kraken, expressing excitement about the new trading options:
“We’re thrilled to announce that Kraken now supports new margin pairs for Shiba Inu (SHIB)!”
Kraken’s latest update includes new margin trading pairs, particularly the SHIB/EUR pair. This means that users can now trade Shiba Inu against the Euro (EUR) with leverage.
The Euro is the official currency for 20 countries in the Eurozone, such as Germany, France, and Italy. By adding SHIB/EUR, Kraken aims to provide more trading options for investors who use euros for their transactions.
Margin trading allows traders to borrow money to increase their trading positions. To do this, they need to put up collateral, which can be in the form of cryptocurrencies.
While margin trading can lead to higher profits, it also comes with a greater risk of losing money.
For the SHIB/EUR pair, Kraken offers up to 3x leverage, which means traders can potentially triple their exposure to price movements.
There is also a $2 billion limit on the amount of $SHIB that can be traded in long or short positions.
Shiba Inu’s growing popularity
The addition of Shiba Inu to Kraken’s margin trading options is a notable development for the cryptocurrency.
Shiba Inu started as a small, meme-based coin but has gained significant recognition and utility in the crypto world. With the new margin trading options, $SHIB fans in Europe and other regions can now use leveraged trades to try and increase their returns.
This move aligns with Kraken’s broader strategy to offer a wide range of cryptocurrencies for trading.
By supporting popular coins like Shiba Inu, Kraken hopes to attract more users and strengthen its position as a leading cryptocurrency exchange.
The company has hinted that it plans to add more cryptocurrencies in the future, although details on which ones are being considered are not yet available.
Kraken also advises users to trade carefully and be aware of the risks, such as additional costs and fees related to margin trading.
Upcoming developments SHIB
Kraken’s new support for Shiba Inu comes just before the highly anticipated release of SHIB Eternity. This is a mobile trading card game that will incorporate Web3 technology, feature exclusive seasonal tournaments, and offer enhanced rewards.
SHIB Eternity will use $BONE, another token from the Shiba Inu ecosystem, for all transactions within the game.
Shiba Inu’s lead marketer, Lucie, has mentioned that SHIB Eternity is still in testing phases but is expected to be a significant boost for the Shibarium network.
She noted that the game could have a major impact on $SHIB and $BONE token supply through its burn mechanisms, which might influence their market prices.
The popularity of Shiba Inu continues to grow, with several major cryptocurrency exchanges supporting its trading.
Kraken first listed $SHIB in November 2021, and other large platforms like Binance, Coinbase, and Crypto.com have also added $SHIB trading options.
Earlier this year, Robinhood began offering SHIB trading to residents of New York, and Coinbase introduced 1000SHIB-PERP perpetual futures contracts.
These contracts let traders speculate on the future price of $SHIB without actually owning the token, using high leverage and maintaining margin levels to keep their positions.
Kraken’s new margin trading support for Shiba Inu adds to the growing list of trading options for this popular cryptocurrency.
