Regarding the question of#BOMEBig Golden Dog being listed on Coinbase as a perp perpetual trading pair instead of a usdt spot pair, the following is a simplified and highlighted answer:
Market fundamentals:
BOME has been listed on Binance for 3 months. Although its performance has increased, it has encountered many obstacles and its liquidity has been affected.
Trading object selection (perp):
perp is a perpetual contract, which provides transactions without counterparties through vAMM, aiming to enhance liquidity.
It is not used to smash or pull the market, but to improve the trading environment.
Importance of market makers:
Market makers provide quotes and liquidity when the market is sluggish or there is an imbalance between long and short positions, which plays a key role in market balance.
There is currently an imbalance between buy and sell orders in the BOME market, and market makers help stabilize the market.
Buy and sell sentiment and market stability:
There have been a large number of short and sell orders in the BOME market recently, resulting in unstable prices.
Without the balance and regulation of market makers, the market has grown wildly, which is contrary to the healthy development of the project.
Summary: Coinbase chose to launch BOME's perp perpetual trading pair in order to enhance the liquidity and stability of the market through the perpetual contract mechanism provided by vAMM to cope with the current market imbalance between buying and selling orders.
