Binance has launched a new pre-market spot trading service. This makes it the first cryptocurrency exchange to facilitate the trading of actual tokens before their official listing in the spot market. Users can now gain early access to new tokens, which will enhance their trading strategies.
Vishal Sacheendran, the Head of Regional Markets at Binance, stated, “We built Binance Pre-Market to meet user demand for pre-market spot trading. This enhancement will provide greater utility for users and extend the lifecycle of token projects on our platform.”
Binance’s Pre-Market Service Differentiates from Rivals
Unlike other exchanges that typically offer pre-market trading through derivatives, Binance allows users to hold and trade real tokens during the pre-market phase. This sets Binance apart from competitors like Bybit and Coinbase.
Bybit’s pre-market service relies on derivatives. Users must collateralize their assets in USDT, indicating they do not engage with actual tokens during this phase.
Binance’s recent announcement highlights its unique approach:
“Introducing #Binance Pre-Market! Get early access to token price discovery. The first project announcement is coming soon! Learn more here.”
Coinbase International offers a service called “pre-launch markets.” This allows trading of perpetual futures contracts for tokens that have yet to launch. Once these tokens list on spot exchanges, they convert into standard perpetual futures contracts.
Collaboration Between Binance Spot and Binance Launchpool
The Binance Pre-Market service results from a collaboration between Binance Spot and Binance Launchpool. This platform allows users to earn new project tokens by staking other cryptocurrencies. Only selected Launchpool tokens qualify for pre-market trading.
Currently, these tokens remain on hold until their official spot listing. However, the new service will enable immediate trading with some restrictions on withdrawals, transfers, and deposits. Binance will announce when a Launchpool project becomes available for pre-market trading and its start date.
Once pre-market trading begins, all Binance users can trade tokens tagged for “pre-market.” The pre-market period will end at least four hours before the official spot trading starts, with a separate announcement for the listing.
Regulatory Restrictions Impact Availability
This service is not available in certain jurisdictions. Users in the U.S., Canada, Dubai, Japan, the Netherlands, Russia, and Spain cannot access it due to regulatory restrictions.
Binance Assists India in Uncovering $47.6M Fiewin Gaming Scam
In a separate announcement, Binance has revealed its significant role in helping India’s Enforcement Directorate (ED) dismantle a $47.6 million gaming scam connected to the Fiewin app. The scam deceived victims into online betting and gaming, promising quick earnings before seizing their funds.
According to a press release shared with Cryptonews.com, Binance’s Financial Intelligence Unit (FIU) provided crucial information that helped trace the funds and expose the fraud network.
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