Binance launches pre-market spot trading for Launchpool tokens

Binance has launched a pre-market service that allows spot trading of new tokens before they are officially listed on the spot market.

According to an announcement on September 25, Binance Pre-Market will offer select tokens from Binance Launchpool. Launchpool is Binance’s token launch platform where participants lock up BNB (BNB) and First Digital USD (FDUSD) to obtain new tokens.

Why is there a pre-market spot trading feature?

Previously, users had to wait until the Launchpool period ended to spot trade their airdrop coins. The new premarket feature now allows users to buy and sell tokens ahead of their spot listing.

Commenting on the service, Vishal Sacheendran, head of regional markets at Binance, said that its launch aims to meet user demand. It is also designed to enhance the global cryptocurrency exchange’s ecosystem by offering more benefits.

Sacheendran added that pre-market spot trading also allows token projects to “extend their lifecycle” on Binance.

Other major exchanges, including Coinbase and Bybit, have also recently launched pre-market trading, but they are offering derivatives rather than actual project tokens.

“Binance is the only cryptocurrency exchange that offers pre-market spot trading, where tokens are allocated and minted solely for users to hold and trade.”

Binance

The exchange will announce each selected set of Launchpool tokens for pre-market spot trading.

Benefits to users

Binance says the benefits of the pre-market service include early market entry, the opportunity to buy into rigorously vetted projects, and the ability to trade unlisted tokens on the most liquid exchange.

Binance plans to charge standard spot trading fees currently in effect on the exchange. The pre-market offering for each selected token will end four hours before the announced listing time.

According to Binance, the new product will be available in most jurisdictions where it operates, although legal and regulatory requirements may require restrictions in certain countries or regions.