Binance introduces pre-market trading, enabling users to trade tokens before official listings
invezz.com + 1 more 25 September 2024 15:00, UTC The leading cryptocurrency exchange confirmed the launch of the pre-market trading service on Wednesday, allowing individuals to execute early positions in digital assets before their official release.
The new initiative will introduce more trading opportunities for users.
According to the announcement,
This exclusive offering enables users to either divest their proceeds from Launchpool rewards through trades or acquire tokens in advance of the official spot listing.
Meanwhile, Binance becomes the first exchange to offer real tokens for pre-market activities, as other alternatives provide derivative trading for pre-launch activities.
Further, the new service could transform the prevailing landscape and offer lucrative benefits for individuals seeking early opportunities in upcoming token launches.
Binance disrupts the crypto landscape
Binance’s latest initiative separates it from rivals in the cryptocurrency trading sector.
For instance, Bybit’s pre-market service deals with derivatives. That means users need collateral to transact. Rather than relying on the actual tradeable token, Bybit uses placeholder agreements. Also, Coinbase International adopts a derivatives approach in pre-market trading – using perpetual futures contracts.
Binance’s move comes as some exchanges began launching pre-market trading for popular assets. However, that welcomed various issues, as some of the firms opened trading with coins that never existed. Meanwhile, Binance confirmed that its service will include real tokens before their official release.
That will allow users to access early investment opportunities in actual assets. For instance, the exchange can open HMSTR pairs before the 26 September official launch. Individuals can then choose to sell their holdings or accumulate beforehand. Meanwhile, trading will stop about four hours before the spot pair’s activation upon official release.
Binance Launchpool and Binance Spot jointly launched the pre-market service. Some of the benefits that participants will enjoy include:
- Early market entry – individual looking to execute early positions can buy or sell actual cryptocurrencies before their official spot release.
- Increased utilities – Binance Launchpool users can leverage early market actions to trade pre-allocated assets.
- No extra charges – individuals will only incur the highly competitive spot trading fees.
Nonetheless, users can still encounter limitations such as deposit and withdrawal restrictions until the tokens’ official listings.
Potential restrictions
While Binance’s new service introduces more trading opportunities, it isn’t globally accessible. For instance, users in the United States, Spain, Russia, the Netherlands, Japan, Dubai, and Canada cannot participate in pre-market trading.
Moreover, the exchange will comment on the availability of Launchpool assets in the pre-market and the specific timelines.
In summary, Binance becomes the first exchange to open pre-market trading with real digital assets. That’s unlike its rivals, who focus on derivatives. The new service allows users to access early investment opportunities in the cryptocurrency market. Nonetheless, users in restricted jurisdictions will wait until the asset’s official release.
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