Binance strikes again, will pre-market trading trigger the BNB flywheel effect?
Launchpool participants do not need to wait and can "mine and sell at any time," significantly enhancing the BNB golden shovel attributes.Author: Asher, Odaily Planet Daily
Last night, according to Binance's official information, Binance has launched a pre-trading service for spot trading, allowing users to build positions before tokens are listed on the spot market. Additionally, in an interview with The Block, a Binance spokesperson pointed out that while other cryptocurrency exchanges also offer pre-trading, it is typically limited to derivatives trading, whereas Binance is the "first exchange to provide real token trading for users during pre-trading," with tokens specifically allocated and generated for users to hold and trade on the Binance platform before listing.
The main difference between Binance's pre-trading service and those of other centralized exchanges is that Binance's pre-trading involves "spot" trading, while other exchanges primarily trade "futures." Below, Odaily will analyze Binance's spot pre-trading service, including the participation process, product features, and potential impacts on the market.
How does Binance's pre-spot trading service work?
Binance's spot pre-trading service is an exclusive innovative service jointly launched by "Binance Spot" and "Binance Launchpool." Users can hold Launchpool tokens and can buy or sell tokens of Binance Launchpool shares through pre-trading before they are listed on the spot market (but there will be restrictions on withdrawals, transfers, and deposit limits before the official listing). Pre-trading will end at least four hours before the official spot trading begins.
Currently, there are no listed projects for pre-trading, so the first pre-trading project will be announced alongside Binance's new Launchpool announcement * (Note: Binance's spot pre-trading service is not available in certain regions, including the United States, Canada, Dubai, Japan, the Netherlands, Russia, and Spain).*
To help users better understand the spot pre-trading service, the operational process is as follows:
Step 1: Enter pre-trading. Users log into their Binance account, go to the "Trading" section, select "Spot," and then click on the "Pre-trading" tab to view available trading pairs;
Step 2: Purchase tokens. Users can buy tokens during the pre-listing phase, but there are limits, with each token having a maximum holding limit. For example, if the limit is 5 BNB and the user already holds 10 BNB from Launchpool rewards, they cannot purchase more tokens until their holding drops below 5 BNB;
Step 3: Sell tokens. During the pre-market trading period, there are no restrictions on the number of tokens users can sell, allowing them to manage their assets flexibly and potentially lock in profits before the tokens officially list;
Step 4: Strategic trading. Users can adjust their positions using early market data and sentiment analysis during the pre-trading phase and optimize their portfolios based on token performance and expected market trends;
Step 5: Transition to official listing. After the pre-listing phase ends, tokens will transition to Binance's official spot trading, after which they can be withdrawn, transferred, or deposited.
What are the features of Binance's pre-spot trading service?
It is clear that Binance's spot pre-trading service provides users with the opportunity to buy and sell tokens before they are officially listed on the spot market, with the following features:
Early access for all users: Not only participants of Binance Launchpool, but all users on the Binance platform can obtain and trade tokens before the official listing of Launchpool project tokens;
Launchpool users lock in profits early: For Launchpool participants, users can immediately sell the tokens they received as rewards once the spot pre-trading opens, allowing them to realize profits early;
Sufficient liquidity: The selected spot pre-trading options are all high-quality Launchpool projects chosen by Binance, so both platform traffic and project popularity will provide liquidity for trading;
No additional trading fees: According to Binance's relevant announcements, spot pre-trading will not incur any additional fees beyond the standard spot trading fees.
The launch of pre-spot trading is beneficial for the rise of BNB prices
The spot pre-trading service launched by Binance demonstrates differentiated advantages in multiple aspects.
On one hand, compared to pre-trading on exchanges like Bitget, Bybit, and Gate.io, the core of Binance's pre-trading is that users can directly engage in "actual token" trading rather than "futures" trading. This distinction not only enriches the user experience but also attracts more users to trade on the Binance platform, leading to increased traffic. Unlike previous years, despite the continuous rise in BTC prices over the past six months and frequent discussions of a "frenzied bull market" on social media, the performance of most altcoins has not met expectations, failing to show the parabolic rise that many had envisioned, with some altcoins even setting new lows. As a result, community interest in upcoming hot new projects has surged, and on-chain pre-trading and centralized exchange pre-trading activities have become increasingly active. Against this backdrop, Binance's launch of the spot pre-trading service is expected to attract a large user influx due to its advantage as a "giant exchange," helping to boost confidence in Binance's future development and further driving up BNB prices.
On the other hand, the introduction of the spot pre-trading service allows Launchpool tokens to circulate immediately, enabling participants to cash out their mined tokens at any time. For future Launchpool projects launched by Binance, users will not need to wait for mining to end or for tokens to officially go live to realize their gains, achieving a "mine while you sell" model. Furthermore, since the circulation of tokens during the spot pre-trading period is relatively low, airdropped tokens and even other selling pressures have not yet entered the market, theoretically allowing mined tokens to be traded at higher prices, significantly enhancing BNB's "golden shovel" attribute and contributing to further increases in BNB prices.
To attract more traffic, the price performance of the next Launchpool project’s spot pre-trading is particularly crucial. Will its price "skyrocket"? We shall see.
