Table of Contents
Binance has launched a new feature that allows tokens to be traded before their official spot market listing.
Dubbed "Binance Pre-Market,' the feature allows the pre-market trading of selected Binance Launch pool token subscriptions, offering greater utility to Launchpool participants.
The feature gives participants an opportunity to make early trades based on their expectations of the token's performance, essentially reflecting the community's market sentiment.
Blockhead
This pre-market period ends at least four hours before the spot market opens, providing a buffer before the official listing. Binance will then release a separate announcement to confirm the start of the spot trading for that token.
Users will thereby be able to take positions early and responded to market movements ahead of when broader trading begins.
"We built Binance Pre-Market to meet user demand for pre-market spot trading, and enhance the Binance ecosystem so users can enjoy greater utility and token projects can extend their lifecycle on our platform. Binance has always been focused on delivering for our users and we continue to invest in features to give our users the best experience we can," said Vishal Sacheendran, Binance Head of Regional Markets. He added that it allows token projects to extend their lifecycle on the platform.
Key benefits of Binance Pre-Market include early market access, Binance’s stringent token vetting, competitive trading fees, and increased liquidity.
Binance is the only crypto exchange that offers pre-market spot trading, in which tokens are exclusively allocated and generated for users to trade and hold during the pre-market phase on the Binance platform.
Bybit offers a pre-market spot trading service but focuses on derivatives rather than actual tokens. "Both buyers and sellers will have to collateralize their assets on the platform, serving as a guarantee for timely settlement. The collateral will be returned upon successful and timely settlement. All transactions are denominated in USDT," suggesting collateral is held while awaiting token delivery," Bybit's website states.
Coinbase Institutional also has a pre-launch market service but it involves perpetual futures contracts for tokens that have not launched yet. "Once the underlying token is launched on relevant spot exchanges, these contracts seamlessly transition into standard perpetual futures contracts," Coinbase explained.
Blockhead
A Binance spokesperson said its offering positions the exchange ahead of its competitors. “While other crypto exchanges offer pre-market trading, they typically facilitate the trading of derivatives, whereas Binance is the first exchange to have actual tokens for users to trade during pre-market,” the spokesperson said.
