- Binance announced its pre-market spot trading service developed jointly by Binance Launchpool and Binance Spot, allowing users to trade actual tokens before their official listing on the spot market.
- The pre-market trading feature benefits both users and token projects by extending the token lifecycle and offering early market access, with Binance’s pre-market tokens undergoing a strict vetting process.
- Binance Launchpool subscribers can capitalize on early price movements by trading allocated tokens before they are listed on the spot market.
Binance has introduced a pre-market spot trading service allowing users to trade actual tokens before their official listing on the spot market.
Overview of Binance’s Pre-Market Trading
The Binance pre-market trading feature benefits both users and token projects by extending the token lifecycle and offering early market access. Binance’s pre-market tokens undergo a strict vetting process.
Binance Launchpool subscribers can capitalize on early price movements by trading allocated tokens before they are listed on the spot market.
How Binance’s Pre-Market Trading Works
- Strict Vetting: All tokens listed for pre-market trading will undergo Binance’s vetting process.
- Early Market Entry: Users will be able to buy and sell tokens before they officially enter the spot market, thereby providing enough opportunity to capitalize on early price movements.
- Utility for Launchpool users: Subscribers to the Binance Launchpool can capitalize on early market trends by trading the allocated tokens before the official launch on the spot market.
- No Extra Fees: Users will only incur the standard spot trading fees on Binance.
Comparison to Other Exchanges
The recent development makes Binance among the first to offer pre-market spot trading with actual tokens. Besides, other exchanges have explored the same feature with derivatives.
For instance, Bybit’s pre-market trading operates on collateralized assets, allowing users to trade contracts backed by USDT rather than the actual tokens. Similarly, Coinbase offers pre-launch markets enabling the trading of perpetual futures contracts for tokens ahead of their official listings.
However, Binance stated that instead of relying on the derivatives they would directly interact with the assets.
Conclusion
In summary, Binance’s new pre-market trading service allows users to trade actual tokens before they are officially listed. This provides early market access and extends the token lifecycle. Binance is the first major exchange to offer pre-market trading with real tokens rather than derivatives.
