Binance Launches Unique "Pre-Market" Spot Trading Service: Be the First to Hold New Tokens

Binance has launched a spot trading service called "Pre-Market," allowing users to trade tokens before they are officially listed. Following the trend of many other exchanges offering "Pre-Market" trading, the largest exchange Binance has finally caught up, but still maintains its unique features.

What is Binance Pre-Market Spot Trading?

According to The Block, Binance has announced that it is the only cryptocurrency platform offering "Pre-Market" spot trading, allowing users to hold and trade tokens before they are officially listed. Unlike the derivative trading typically offered by other exchanges, Binance emphasizes that its Pre-Market trading involves "real tokens," making this service unique in the market.

Vishal Sacheendran, Binance's Regional Market Lead, stated: "We have established the Binance pre-market trading market to meet the demand of users for pre-market spot trading and to enhance the Binance ecosystem, enabling users to enjoy more powerful features and allowing token projects to extend their lifecycle on our platform. Binance has always focused on providing services to our users, and we will continue to invest in building better features to provide the best experience for our users."

How are Binance's competitors responding?

Binance's competitor, Bybit, also offers a similar Pre-Market service, but unlike Binance, Bybit's Pre-Market trading involves derivatives rather than actual tokens. According to Bybit's official website, both buyers and sellers need to collateralize assets on the platform for trading, and all trades are conducted in USDT. This indicates that Bybit's Pre-Market trading operates using derivative tools before token delivery.

Another competitor, Coinbase, takes a different approach with its "Pre-Launch Markets" service, allowing users to trade perpetual futures contracts before tokens are officially listed. Once the relevant tokens are listed, these futures contracts will automatically convert to standard perpetual futures contracts.

How does Binance Pre-Market work?

Binance's Pre-Market spot trading service is a collaboration between Binance Spot and Binance Launchpool. Launchpool allows users to acquire new project tokens by staking BNB and other tokens, and in Pre-Market trading, some of Launchpool's tokens will be made available for trading in advance.

Currently, users hold the tokens from Launchpool until they are officially listed on Binance. However, through the Pre-Market service, users can trade these tokens immediately, although there are still some restrictions before the official listing, such as withdrawal, transfer, and deposit limitations.

Binance will announce when Pre-Market trading for a specific Launchpool project will open and the start date of trading. Users can still subscribe to Launchpool as usual, and once Pre-Market trading begins, all Binance users can trade tokens labeled "Pre-Market." It is worth noting that the Pre-Market trading period will end at least four hours before the official spot trading begins, and Binance will issue a separate announcement for the official listing.

Limitations of Binance Pre-Market Service

While Binance Pre-Market provides new trading opportunities for global cryptocurrency investors, the service is not yet available in certain regions, including the United States, Canada, Dubai, Japan, the Netherlands, Russia, and Spain. Through Binance Pre-Market trading, investors can participate in the token market of emerging projects earlier, giving them an advantage in future cryptocurrency trading. This new service undoubtedly enhances Binance's competitiveness as a leading global cryptocurrency exchange and presents new challenges for other exchanges.