CoinEx has launched its innovative Pre-token Trading platform, introducing a unique and engaging way for users to participate in the market. Designed to simplify the trading experience, Pre-token Trading allows users to either become pre-minters, creating and selling PreTokens, or directly trade PreTokens as holders. This versatile tool goes beyond traditional asset trading by offering users the opportunity to pre-mint and speculate on both unreleased projects and event outcomes, making it a dynamic platform for short-term investments and predictions. In the following paragraphs, we will delve into what Pre-token Trading is. Furthermore, we will highlight five upcoming prediction markets that could generate significant excitement in the crypto community as a Pre-token Trading project.
What Is Pre-token Trading?
Pre-token Trading is an innovative service that allows users to pre-mint (create), trade, and deliver PreTokens (preminted tokens) by staking assets. This gives traders the opportunity to profit before the official release of popular new tokens or major events. With Pre-token Trading, users can flexibly pre-mint and trade PreTokens, and then settle them at maturity within pre-token markets.
Before diving into the specifics of this new trading service, it’s important to clarify a few key terms:
Pre-minting: The process of creating PreTokens before their official release.
Pre-minter: The user who stakes assets to pre-mint PreTokens.
Holder: The individual or entity holding the PreTokens after they are minted.
PreToken: The preminted tokens that are traded before the official token release.
Delivery Time: The settlement time when the PreTokens are exchanged for USDT.
Understanding these concepts is essential for navigating CoinEx’s Pre-token Trading service efficiently.
How Does Pre-token Trading Work?
Pre-token Trading begins with a pre-minter creating a PreToken. When a popular asset is about to be listed, pre-minters can create a PreToken to speculate on the asset's potential listing price. To initiate this process, pre-minters must stake USDT to pre-mint (create) PreTokens, which they can then sell on CoinEx. Once the PreToken is created and the pre-minting time is set, Pre-token Trading starts according to the pre-minting time, allowing all users—including pre-minters—to buy or sell the PreToken in the spot market until the asset is officially listed with its final price.
Beyond asset price speculation, Pre-token Trading can be applied to other high-profile events. For example, topics such as predictions for the U.S. presidential election or the Federal Reserve’s next interest rate decision can also be pre-minted into PreTokens. These tokens can then be traded in the spot market until the event concludes and the outcome is determined.
At the conclusion of a Pre-token Trading project, CoinEx will initiate the delivery process. A fair delivery price will be determined by CoinEx prior to the official token listing (or the outcome of the major event). The price will be calculated in accordance with the project-specific delivery rules, which may vary depending on the nature of the project. Both PreTokens and collaterals will be settled in USDT.
It is important to clarify that PreTokens are not the actual tokens of any project; rather, they are preminted tokens representing speculative positions. PreTokens are virtual assets created through the staking process and are limited to internal use within CoinEx.
Pre-token Trading Participants’ Opportunities and Costs
In Pre-token Trading, both pre-minters and traders have distinct rights, obligations, opportunities, and costs.
For pre-minters, their primary opportunity lies in the ability to set an initial project for popular tokens before they are officially listed, allowing them to potentially profit from accurate price predictions. Additionally, Pre-token Trading offers the flexibility to turn highly topical or controversial events into short-term investment opportunities by minting PreTokens linked to those events.
The cost for pre-minters is to stake assets (USDT) in order to launch a PreToken project. It is calculated based on the number of PreTokens minted multiplied by the price ratio of the PreToken to USDT. No pre-minting fee will be included. While pre-minters have the right to redeem their PreTokens for USDT at any point during the trading period, a 2% redemption fee applies.
For traders, the opportunities are similar to those in spot trading but with added excitement. Traders can align their investment strategies with their beliefs about market trends, events, or outcomes, allowing them to express these convictions through their trades. How well they adhere to these beliefs may be reflected in their profits or losses at final settlement.
It's worth noting that pre-minters can also take on the role of traders, giving them the opportunity to participate from both angles. Whenever a PreToken project comes to settle, a 1% delivery fee would be charged for both the pre-minter and traders.
Pre-token Trading Risks
Pre-token Trading, like any other investment, comes with inherent risks. One risk is the possibility of early delivery of PreTokens under certain conditions. CoinEx may deliver PreTokens early if the off-platform market price of the underlying asset significantly exceeds the pre-minted price on CoinEx or if unexpected events occur, such as early announcements of results tied to the PreToken project. In such cases, PreTokens that are delivered early may still have their markets reopened for trading at a later stage, depending on market conditions.
Pre-token Trading also involves several risks related to market volatility, liquidity, and manipulation. PreToken prices are often highly volatile, especially when the outcomes of the related projects or events are uncertain, which can lead to significant financial losses. Liquidity risk is also a concern, as PreTokens are not the actual tokens of any project, which may result in difficulty finding buyers or sellers at the desired prices. Furthermore, smaller or emerging PreToken markets are more vulnerable to market manipulation by large traders, which can distort market expectations and lead to inaccurate pricing.
Top 5 Prediction Market Events to Watch
Since Pre-token Trading shares the essence of prediction markets, projects or events that are ideal for pre-market speculation also align perfectly with the Pre-token Trading model. With that in mind, we have identified five highly anticipated items that are likely to capture the attention of crypto traders in the near future.
The Next Fed Interest Rates
Launching a prediction market for the next Federal Reserve interest rate decision would be highly strategic. It offers broad appeal, engaging traders from various financial backgrounds due to the global impact of rate decisions on markets. The frequent updates and data-driven nature of this market ensure sustained interest, while the inherent uncertainty surrounding economic conditions creates volatility, making it a compelling trading opportunity. By tapping into the speculation around Fed policy, pre-minters can attract a diverse and active participant base.
Berachain (BERA)’s TGE
The date of Berachain (BERA)’s Token Generation Event (TGE), anticipated to take place in Q4 of 2024, presents a market opportunity for Pre-token Trading. The excitement surrounding Berachain's innovative Proof-of-Liquidity consensus and EVM compatibility ensures significant interest among investors eager to participate in the launch. As the TGE date approaches, the influx of updates and community discussions will further engage traders, creating a dynamic environment for speculation. By offering a market focused on the TGE date, pre-minters can effectively capture the enthusiasm and anticipation of the crypto community, enhancing user engagement on the platform.
Babylon’s TGE
Babylon, another popular token, also presents a highly promising market opportunity for Pre-token Trading on its TGE date. Expected to happen in Q1 of 2025, the anticipation surrounding Babylon’s innovative Bitcoin staking protocol is expected to draw significant attention from the crypto community, creating an active trading environment fueled by speculation on its airdrop period that pre-minters can engage a diverse and enthusiastic user base.
The Super Bowl Champion
A prediction market for the Super Bowl Champion 2025 would attract a broad and diverse audience due to the global popularity of the event. The unpredictability of NFL games, combined with frequent updates throughout the season, ensures a dynamic and engaging trading environment. With numerous potential trading options, from the overall champion to MVP predictions, this market offers versatility and excitement. Also, the growing crossover between sports and cryptocurrency provides an opportunity to capture both sports enthusiasts and crypto traders.
The UEFA Champions League Winner
The UEFA Champions League 2025 winner market offers a unique opportunity to tap into the global appeal of football, attracting both sports fans and traders. The unpredictable nature of the tournament, with its dynamic rounds and surprise outcomes, makes it ideal for speculative trading, keeping the market engaging and active. With additional trading options around top scorers and match results, the market would cater to diverse interests. Just like the Super Bowl, football increasingly intersects with cryptocurrency. Pre-minters can leverage this trend, creating a highly anticipated, versatile market that appeals to a broad range of users.
Disclaimer: Please note that the information provided on this website is intended for informational purposes only. CoinEx assumes no liability for any financial losses resulting from cryptocurrency trading. It is advised that you conduct your own research.
Hot