Binance Launches Pre-Market Trading Service for Tokens Ahead of Official Listing

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September 25, 2024

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Binance Launches Pre-Market Trading Service for Tokens Ahead of Official Listing
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Binance has announced the launch of a new pre-market token trading service. In practice, the service will allow users to take early positions before the official listing of assets. The new feature makes Binance the first cryptocurrency exchange to offer the possibility of trading real tokens during the pre-market. Meanwhile, other platforms usually operate with derivatives.

According to Binance, this service is unique because the tokens are allocated and generated directly for users, who can hold and trade them on the platform itself during the pre-market period.

“Binance is the only cryptocurrency exchange that offers pre-market spot trading, where tokens are made available and can be traded before their official listing,” a company spokesperson said.

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While other cryptocurrency exchanges, such as Bybit, also offer similar services, they usually operate with derivatives rather than actual tokens. On Bybit, for example, users need to provide collateral while waiting for the tokens to be delivered, with the assets denominated in USDT (Tether), as described on the platform’s website.

Binance Launches Pre-Market Service

Meanwhile, Coinbase International uses perpetual futures contracts for assets that have not yet arrived on the platform, and these are converted to regular futures contracts once the underlying token is listed on spot exchanges.

The “Binance Pre-Market” service is the result of a partnership with Binance Spot and Binance Launchpool. The latter allows users to acquire tokens from new projects by staking BNB and other assets.

Now, with the Pre-Market, users can immediately trade the tokens they previously held until the official listing. However, there are some restrictions on the withdrawal, transfer, and deposit of tokens until the formal listing takes place.

Binance plans to announce when a Launchpool project will be available for pre-market trading, along with the start date of that period. Once pre-market trading begins, any Binance user will be able to trade these tokens, identified by the “pre-market” tag.

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This trading period will end at least four hours before the official spot trading begins, as announced by Binance.

The Binance Pre-Market service, however, will not be available to users from certain regions, including the United States, Canada, Dubai, Japan, the Netherlands, Russia, and Spain. These restrictions are part of the exchange’s regional compliance policies.