In traditional financial markets, primary market and secondary market refer to different market environments and transaction stages.
Primary Market: refers to the market where new stocks or bonds are issued for the first time. During this stage, the company raises funds by issuing new stocks or bonds. Investors purchase these newly issued securities directly from the company or its agents, and these transactions inject funds into the company's capital structure. The main participants in the primary market include companies, underwriters and investors.
Secondary Market: The secondary market refers to the buying and selling of issued securities on stock exchanges or other exchanges. Trading of these securities no longer affects a company's capital structure but is instead bought and sold among investors. In the secondary market, the price of securities is determined by market supply and demand, and investors can conduct buy and sell transactions based on market prices. The main participants in the secondary market include investors, stock exchanges and brokers.
Therefore, the main difference between the primary market and the secondary market lies in the objects and nature of transactions. The primary market is the market where new securities are issued for the first time, while the secondary market is the market where already issued securities are secondarily bought and sold on an exchange.
By analogy with the primary market and secondary market of cryptocurrency, they have many similarities, but there are also similarities:
Primary Market: In the field of cryptocurrency, the primary market usually refers to the stage when new projects issue tokens, such as when a project conducts a pre-sale. In the primary market, the project team sells tokens directly to investors at a lower price and collects funds to support the development and promotion of the project. In the primary market, the project party or team will set the price of the token and determine the sale price based on the project's situation and market demand. This price may be affected by factors such as the popularity, prospects, and market sentiment of the project. In some cases, the project party may provide early investors with some benefits, such as discounts or additional incentives, to encourage them to participate in the project.
However, BOME does not conduct pre-sales in the same way, but has a unique way of playing it. By sending SOL to the designated Solana address to participate, the pre-sale does not have a fixed price, but distributes tokens according to proportion. BOME’s pre-sale rules are 69000000420 coins, 50% of which are used for pre-sale. There is no exact price for the tokens at the beginning. All pre-sale tokens will be distributed according to the proportion of contribution, and then multiplied by 1.5 times according to the price of each BOME Create 1 or 2 liquidity pools. After the pre-sale, funds were integrated into the pool, and the initial price was set to 0.0000496u. Various large orders were purchased, which promoted market liquidity. The initial price setting here is different for each project. Some are public auctions, some are fixed prices, and some are dynamically adjusted.
Let me talk about LP (Liquidity Providers) here, which refers to liquidity providers. The next article will explain what it means specifically. If you want to popularize science knowledge, come and pay attention!
Secondary Market: The secondary market of cryptocurrency is similar to the secondary market of traditional financial markets. It refers to the buying and selling of issued tokens on platforms such as cryptocurrency exchanges. For example, Binance, okx, bg, Huobi, etc.
Although the primary market is to buy at the cheapest price, you must also do a good job of screening. There are too many project parties running away, and only a few of the tens of thousands of coins are profitable. 99% of them are empty coins, fraudulent coins, and stolen coins. There are more and more, and many of them ended up being zero. Of course, there are also those who are making fun of the 10u God of War. If you vote for 10u in every project, you should definitely win one. Not long ago, there was a fake pixel project website. You can get 100 pixels by pulling someone’s head. Isn’t that just nonsense? It takes a long time to mine 100 bnbs to get just a few. There is no pie in the sky. It’s too easy to look like fishing. Websites that steal coins are widely spread among many new people. It is best to empty your wallet, just in case.
