Binance launches pre-market spot trading for Launchpool tokens

Binance has launched a pre-market service that allows users to engage in spot trading of new tokens before they officially list on the spot market. Announced on September 25, this feature will include selected tokens from Binance’s Launchpool, the platform where participants can lock BNB and First Digital USD to farm new tokens.

Purpose of the Pre-Market Trading Feature

Previously, users had to wait for the completion of the Launchpool period before they could trade their airdrop tokens on the spot market. The new pre-market service addresses this demand, enabling users to buy or sell tokens prior to their official listing. Vishal Sacheendran, head of regional markets at Binance, emphasized that this feature is intended to enhance the exchange’s ecosystem and provide greater utility for users.

Additionally, pre-market trading allows token projects to extend their life cycle on Binance, giving them more visibility and trading opportunities.

Unique Position in the Market

While other major exchanges like Coinbase and Bybit have also introduced pre-market trading features, they primarily focus on derivatives rather than actual project tokens. Binance stands out as the only crypto exchange to offer pre-market spot trading for tokens generated specifically for this purpose.

Benefits for Users

The pre-market trading feature provides several advantages:

• Early Market Entry: Users can start trading new tokens ahead of their official listing.
• Access to Vetted Projects: Only rigorously evaluated projects will be available for pre-market trading.
• Liquidity: Users can trade tokens on one of the most liquid exchanges before they are widely available.

Trading Fees and Availability

Binance plans to apply its standard spot trading fees to this new service. The pre-market trading window for each selected token will close four hours before its official listing time. While the service will be accessible in most jurisdictions, certain legal and regulatory restrictions may apply in specific regions.

This initiative is expected to enhance user engagement and provide traders with more opportunities to participate in the growing crypto market.