Binance has officially launched its Spot Pre-Market service, offering users the opportunity to trade new digital assets before they are officially listed on the spot market. What sets this service apart is that Binance uses “real tokens” rather than derivative products like those found on many other exchanges.
Binance’s Pre-Market service combines Binance Spot and Binance Launchpool, allowing users to earn tokens from new projects by staking BNB and other tokens. Only selected Launchpool tokens are eligible for Pre-Market trading. While waiting for the official listing, users can immediately trade these tokens, but certain features such as withdrawals, transfers, and deposits will be restricted until the token is officially listed.
Introducing #Binance Pre-Market!
Get early access to token price discovery. The first project announcement is coming soon!
Learn more 👉 https://t.co/JiYKNSjPwX pic.twitter.com/uknjLlZMwy
— Binance (@binance) September 25, 2024
Binance will announce when a Launchpool project becomes available for Pre-Market trading, along with the start date. During this phase, all Binance users can trade tokens labeled as “pre-market.” This phase will end at least four hours before official spot trading begins, and a separate announcement will be made when the token is officially listed.
Notably, Binance’s Spot Pre-Market service is not available in certain countries, including the United States, Canada, Dubai, Japan, the Netherlands, Russia, and Spain.
Pre-Market is not a new concept for seasoned investors in the crypto market. It provides them with the opportunity to access new tokens early, explore market prices efficiently, and increase liquidity before the token is officially listed.
While some other crypto exchanges also offer Pre-Market services, they usually support trading in the form of derivatives. Binance stands out as one of the first exchanges to introduce Pre-Market trading using real tokens.
Exchanges like Bybit and BingX also offer Spot Pre-Market services, but they use an OTC trading model, where buyers and sellers can freely negotiate prices. On Bybit’s platform, both parties must collateralize their assets to ensure timely payments. Transactions are completed in USDT after successful payments, and collateral is returned.
Meanwhile, Coinbase’s “Pre-Launch Market” service involves trading perpetual futures contracts for unreleased tokens. According to Coinbase’s announcement, once the underlying token is listed on spot exchanges, these contracts will automatically convert into standard perpetual futures contracts.
