Binance Launches Pre-Market – Trade Cryptocurrencies Before Stock Market Debut

The leading crypto exchange Binance is expanding its range of offerings with a “pre-market”. Cryptocurrencies can be traded there before they make their official Binance exchange debut. Does this make sense for you?

Binance has two popular programs, Launchpool and Launchpad, that support new cryptocurrencies when they enter the market

The crypto exchange Binance claims to have 230 million customers worldwide, and quite a few of them are looking forward to Sunday (September 29th), when founder Changpeng “CZ” Zhao is due to be released from prison. When CZ was in charge of Binance, the platform was a hit with innovative offers in high volumes. Richard Teng is now Binance CEO, and there is an interesting new project called Pre-Market.

According to the official announcement, this means that in the future it will be possible to trade certain cryptocurrencies on Binance before the actual spot market opens. The crypto exchange has two popular programs, Launchpool and Launchpad, that support new cryptocurrencies when they enter the market. These are intended to form the basis for placing selected newcomers on a pre-market.

In fact, a recurring pattern can be seen in crypto premieres through Binance Launchpool. Since the Launchpool campaigns are regularly oversubscribed, the price curves usually shoot up at the stock market debut and only slowly settle at real market prices. Binance Pre-Market could ease the situation if participants offer their tokens promised through Launchpool before the actual start of trading.

Competing crypto exchanges such as Bybit or Coinbase also offer “pre-markets”, but they handle them on the basis of derivatives. Binance sees its pre-market as unique so far because “real” tokens are brought onto the market there.

The crypto exchange has not yet revealed which cryptocurrency will be used to celebrate its pre-market debut. Hamster Kombat (HMSTR) will make its stock market debut this Thursday following a launch pool campaign, but Binance has not opened a pre-market for it.

Conclusion: Binance Pre-Market – highly speculative or useful?

Platforms such as WhalesMarket, which specialize in pre-market trading, generate millions in sales every day with their pre-market offers. Binance does not want to leave this market segment to the competition and has put together a package for its pre-market that appears serious.

According to the information available, Binance Pre-Market will also be open to customers from Germany, Austria and Switzerland. If you take part in Launchpool promotions, you should automatically be informed if there is also a pre-market. We will only know whether it is really worth it when we have practical experience with Binance Pre-Market.

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(Featured image by Kelly Sikkerna via Unsplash)

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