Crypto exchange Binance’s pre-market has officially been rolled out, giving users the option to buy and sell launchpool tokens even before they are listed.
The pre-market is a service launched in conjunction by Binance Spot and Binance Launchpool.
Users can either divest their proceeds from launchpool rewards via spot trades or acquire tokens ahead of official spot listings.
Users from not all jurisdictions have access to the service at the moment. Excluded countries include Bahrain, Canada, Dubai, Iran, Japan, the Netherlands, North Korea, Russia, and the USA.
Even in the countries available, it should be noted that users can’t withdraw their pre-market tokens out of their exchange account because the deposit and withdrawal functions for these tokens are temporarily suspended during this phase.
According to the thumb rule, each pre-market trading period will end at least four hours before spot trading starts.
Once that period concludes, all unfulfilled pre-market orders will be automatically canceled and removed from the order book. The pre-market holdings can be viewed in users' spot wallets.
This launch is being welcomed by market participants because early participants can put to use market insights and trends before en-masse public trading begins.
By taking part in the price discovery, traders can secure favorable positions and establish more predictable pricing when the token actually starts trading on the spot market.
Furthermore, pre-market participation incurs no overhead fees. Only the usual spot trading fees will have to be borne by the users. According to the team,
“Binance Pre-market isn’t just about trading tokens earlier than others; it’s about strategically navigating the market landscape, understanding potential trends before they fully unfold, and optimizing your portfolio’s outcomes in the fast-paced world of cryptocurrency trading.”
