In order to facilitate spot trading of new tokens before their formal listing on the spot market, Binance has launched a pre-market service.
Selected tokens from the Binance Launchpool will be available in the Binance Pre-Market, according to a statement made on September 25.
In order to farm new tokens, users can lock BNB and First Digital USD on Binance’s token launch platform, Launchpool.
Why the pre-market spot trading feature?
Previously, users couldn’t spot trade their airdrop coins until the Launchpool period expired. Thanks to the new pre-market feature, users can now purchase or sell tokens before their spot listing.
In his remarks on the service, Binance’s head of regional markets, Vishal Sacheendran, stated that its debut aims to satisfy customer demand.
It is also intended to improve the environment of the international cryptocurrency exchange by providing more utility.
According to Sacheendran, coin projects might “extend their life cycle” on Binance through pre-market spot trading.
Pre-market trading has also lately been introduced by two more well-known exchanges, Coinbase and Bybit. But they provide derivatives rather than project coins themselves. Binance:
Binance is the only crypto exchange to offer pre-market spot trading whereby tokens will be exclusively allocated and generated for users to hold and trade in the pre-market.”
Every chosen Launchpool token set for pre-market spot trading will be announced by the exchange.
Benefits for users
According to Binance, the pre-market service offers early market entry, the chance to purchase carefully screened projects, and the ability to trade tokens not listed on the most liquid exchanges.
Binance intends to impose the usual spot trading costs currently in effect on the platform. Each chosen token’s pre-market sale will terminate four hours before the scheduled listing time.
The new product will be accessible in the majority of the territories in which Binance conducts business. However, limitations might be necessary in some nations or areas due to legal and regulatory regulations.
