Binance has introduced a pre-market service that enables spot trading of new tokens before they officially list on the spot market.
According to an announcement on Sept. 25, the Binance Pre-Market will offer selected tokens from the Binance Launchpool. The Launchpool is Binance’s token launch platform where participants lock BNB (BNB) and First Digital USD (FDUSD) to farm new tokens.
Why the pre-market spot trading feature?
Previously, users had to wait until the Launchpool period ended to spot trade their airdrop coins. The new pre-market feature now allows users to buy or sell tokens before their spot listing.
Vishal Sacheendran, head of regional markets at Binance, commented on the service, noting that its launch is aimed at meeting user demand. It is also designed to enhance the global crypto exchange’s ecosystem by offering greater utility.
Pre-market spot trading also allows token projects to “extend their life cycle” on Binance, Sacheendran added.
Other top exchanges, including Coinbase and Bybit, have also recently launched pre-market trading. However, instead of actual project tokens, they offer derivatives.
“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.”
Binance
The exchange will announce each selected Launchpool token set for pre-market spot trading.
Benefits to users
Early market entry, the opportunity to buy strictly vetted projects, and trading tokens yet to list on the most liquid exchange are some of the benefits Binance says come with the pre-market service.
Binance plans to charge the standard spot trading fees currently applicable on the exchange. The pre-market offering for each selected token will end four hours before the announced listing time.
According to Binance, the new product will be available in most jurisdictions where it operates. However, legal and regulatory requirements may necessitate restrictions in certain countries or regions.
From: crypto.news
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