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Perpetual Swaps: The Altcoin Truth Serum
BitMEX CEO Stephan Lutz has a message for crypto traders — if you want to know the real worth of an altcoin, keep your eyes on perpetual swaps.
Perpetual swaps are a type of trading contract that lets investors bet on a coin’s price without actually owning it. Unlike futures contracts, perpetual swaps don’t expire — traders can hold them forever (or at least until their nerves give out).
According to Lutz, the moment an exchange launches a perpetual swap for a new altcoin is when “true price discovery” starts. In other words — no more hype, just market reality.
The Role of Perpetual Swaps in Price Discovery
Lutz explains that perpetual swaps let traders bet both ways — they can go long (betting price goes up) or short (betting price goes down). This flexibility helps expose whether a coin has real market support or is just floating on vibes and memes.
Tracking swap movements gives traders a peek into market sentiment. If everyone is shorting a new altcoin after its perpetual swap launches… maybe it’s not the next Bitcoin after all.
Exchange Listings Impact Perpetual Swaps Too
But wait — there’s more. The exchange where a swap is listed also makes a big difference.
A BitMEX report revealed that between January and March 2025:
- 70% of perpetual swaps listed on OKX hit all-time highs on day one.
- Bybit and BitMEX both hovered around 41%.
- Binance? A clean 50-50 split.
So yeah, where you trade matters almost as much as what you trade.
Pro Tip from the CEO
Lutz recommends traders carefully choose their exchange, especially when dealing with perpetual swaps. Liquidity, listing behavior, and platform reputation can all tip the scales in this high-stakes guessing game.
