Binance has announced the launch of its pre-market trading platform that will allow users to trade tokens prior to their formal listing on the spot market.
According to the crypto exchange’s official announcement, users of Launchpool can also sell their tokens in advance and get incentives through airdrops.
In order to guarantee the project’s widespread availability and offer security, Binance previously announced that stringent restrictions are imposed on the number of tokens that each Launchpool and Pre-Market user may possess.
How Can Customers Use The Platform?
Binance customers can continue to subscribe to Launchpool as usual and will receive their allotted tokens when a project is chosen for pre-market trade.
All Binance users will be able to trade these tokens marked as “pre-market” as soon as the pre-market period begins. At least four hours before the token’s official listing on the spot market, this window will close.
However, users can only participate in the Pre-Market if they agree to the trading terms and understand that there may be risks involved. Depending on legal and regulatory constraints, this product might not be offered or be restricted to specific users in certain locations or jurisdictions.
Binance’s New Trading Platform Comes Amid Dwindling Market Share
Binance has time and again tried to launch new products in order to keep its market share alive. However, the largest cryptocurrency platform’s percentage of trading activity in the roughly $2 trillion digital asset market dropped to its lowest level in four years in September, suggesting that the company’s rehabilitation efforts are taking time to bear fruit.
The largest cryptocurrency exchange in the world’s market share dropped from 42.7% at the start of the year to 36.6% last month, according to Bloomberg.
Binance’s 40.7% stake in derivatives trading is also the lowest it has been in four years, and its 27% share in the spot market is the lowest it has been since January 2021.