Pre-Token Trading FAQ

 

1. What is Pre-token Trading?

Pre-token Trading is an innovative service that enables pre-minting (creating), trading, and delivering PreTokens by staking assets. It allows users to earn profits before popular new tokens or major events are officially released. Through Pre-token Trading, users can pre-mint and trade PreTokens flexibly, and deliver them at maturity in prediction markets.

Note: PreTokens are not genuine tokens of any project. Pre-minted and held PreTokens will be settled with collateral (USDT) at a fair price, and users will receive the collateral (USDT) funds upon delivery.

 

2. What are the edges of Pre-token Trading?

• Simplified user experience: Users can the pre-minter, or directly trade Pre-Tokens to become holders.

• Versatile application: You can pre-mint PreTokens for both assets (such as unreleased projects) and events (for their possible outcomes).

• Comprehensive Risk Management: If the market price outside CoinEx has significantly exceeded our pre-minting price, we may settle and deliver Pre-Tokens early and reopen the market afterward, and in this way, we can better safeguard user interests.

 

3. How to pre-mint PreTokens?

CoinEx will specify the amount of collateral required for pre-minting PreTokens, such as USDT, and by staking a certain amount of assets, users can acquire equivalent PreTokens, available for redeeming and spot trading at any time.

 

4. What are the risks in Pre-Token Trading markets?

There may be multiple challenges before the official public issuance of tokens for any project:

• High volatility risk: PreToken prices experience extreme fluctuations, especially when outcomes of new projects or events are unknown, potentially leading to significant losses.

• Liquidity risk: Since the trading does not involve genuine tokens of any project, some PreTokens may face liquidity issues.

• Market manipulation risk: Small-scale or emerging Pre-Token markets are more fragile to manipulation by large traders, potentially mispricing market expectations.

Since the trading risk of Pre-Token Trading is higher than normal spot trading, please ensure you fully understand the pre-market trading rules and the nature of each project before using the service.

 

5. How does Pre-token Trading work?

There are 3 stages in Pre-Token Trading: Pre-minting, trading, and delivery.

• Pre-mint: Users can stake assets to pre-mingt Pre-Tokens. Also, they can also redeem their Pre-Tokens.

• Trade/Hold: After the PreToken trading starts, users can buy or sell them in the spot market of these PreTokens.

• Deliver: When a Pre-Token Trading project concludes, CoinEx will initiate the delivery process. Meanwhile, all pre-minting, redeeming, and trading services will be terminated. The system then captures a snapshot of all user assets and performs delivery at a fair price.

 

6. How is the delivery price determined?

CoinEx will establish a fair price as the delivery price before the official token or popular event is officially listed or announced. Each project may differ based on its specific circumstances. The method for determining the delivery price will be subject to the delivery rules.

 

7. When will the delivery take place?

CoinEx implements comprehensive risk management strategies to ensure the stability and asset security of Pre-Token Trading.

The delivery time for each PreToken project may vary based on actual circumstances. Please refer to the delivery rules for more information.

CoinEx may deliver PreTokens early in the following situations:

(1) When the off-platform market price of the PreToken project is significantly higher than the pre-minted price on CoinEx.

(2) When unexpected circumstances occur or results are announced early for the event related to the PreToken.

PreTokens delivered early may have their markets reopened later. Please stay tuned with the official announcements for details.

 

8. What is the difference between PreTokens and regular tokens?

PreTokens are virtual tokens pre-minted through staking. However, these assets cannot be deposited or withdrawn on-chain, or transferred to Futures / Margin / Financial / Loan accounts. PreTokens are only available for internal transfers and transfers between main and sub-accounts.

 

9. Is derivative trading such as futures or margin trading available to Pre-Token?

No, PreTokens are limited to spot trading and will not be available to other types of trading. PreTokens will only be held in the spot account.

 

10. What are the trading fees for Pre-token Trading?

Pre-token Trading only charges fees in USDT. The fees for each stage are as follows:

• Pre-minting: Free
• Trading: Charged according to spot market rates, VIP discounts applicable
• Redeeming: 2%, Latest Price * Redeeming Amount * 2%
•  Delivery:

For pre-minters: (Staked Value - Delivery Price * Pre-Minted Amount) * 1%

For holders: Delivery Price * Held Amount * 1%

 

11. Will Pre-Token Trading affect the listing price of the official tokens?

No, it will not. Pre-token trading prices may reflect market expectations, but will not determine the official listing price. Instead, the official price of a token launched will be subject to broader market conditions. Both the Pre-Token price and the listing price of the official tokens will be priced by the market respectively and are not interactive.