Binance Rolls Out Pre-market Spot Trading with ‘Actual Tokens’

Binance, one of the largest crypto exchanges globally, has unveiled a new pre-market spot trading feature, allowing users to trade real tokens before their official listing. The innovative service, announced on Wednesday, September 25, enables users to take early positions on the ‘actual tokens’ exclusively available on the platform.

Binance Launches Pre-market Spot Trading

“Binance is the only crypto exchange to offer pre-market spot trading whereby tokens will be exclusively allocated and generated for users to hold and trade in the pre-market on the Binance platform,” the exchange stated, according to The Block report.

The launch positions the exchange ahead of competitors, as most other exchanges offering pre-market trading focus on derivative products rather than “actual tokens.” The exchange’s spokesperson highlighted this difference, saying:

“While other crypto exchanges offer pre-market trading, they typically facilitate the trading of derivatives, whereas Binance is the first exchange to have actual tokens for users to trade during pre-market.”

This new service provides users access to certain tokens from Binance Launchpool, a platform that allows users to earn new project tokens by staking their assets. Traditionally, these tokens were only tradable after their official spot listing.

However, with the introduction of the pre-market service, the exchange’s users can now trade these tokens before they are officially listed. Nonetheless, there will be some restrictions on withdrawals, transfers, and deposits until the official listing date based on the terms listed by the crypto exchange.

Introducing #Binance Pre-Market!

Get early access to token price discovery. The first project announcement is coming soon!

Learn more 👉 https://t.co/JiYKNSjPwX pic.twitter.com/uknjLlZMwy

— Binance (@binance) September 25, 2024

The exchange also clarified that the pre-market service is available only for select Launchpool tokens. Moreover, the exchange will announce the availability and start date of pre-market trading for each project, ensuring users have the opportunity to plan their trades.

Once the pre-market period begins, all eligible users can trade the tokens marked as “pre-market.” Thereafter, the pre-market trading will close at least four hours before the official spot listing. The latest announcement follows the exchange’s recent achievement of $100 trillion all-time trade volume, solidifying its position in the industry.

Areas Excluded & Growing Competition

The pre-market feature is a collaborative effort between Binance Spot and Binance Launchpool. Furthermore, it aims to enhance user participation and allow early access to promising tokens. However, certain regions are excluded from accessing the service. Users in the U.S., Canada, Dubai, Japan, the Netherlands, Russia, and Spain are among those who will not have access to this feature, potentially due to regulatory reasons.

Despite Binance’s lead in offering real tokens for pre-market trading, other exchanges have launched similar services, though with notable differences. For instance, Bybit provides a pre-market spot trading service that operates more like a derivative, requiring users to collateralize their assets for settlement.

On Bybit, transactions are denominated in USDT with collateral returned after successful settlement. Moreover, Coinbase International also offers a “pre-launch markets” service. However, it involves trading perpetual futures contracts on tokens before they are officially listed instead of the real tokens.

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