What Are Crypto Pre-Markets?
Crypto pre-markets are places where investors can trade tokens before they are officially launched to the public. Unlike regular markets, which operate 24/7, crypto pre-markets focus on trading tokens that havenât been released yet.
How Do Crypto Pre-Markets Work?
Crypto pre-markets let traders buy and sell tokens during the period between when a token is announced and when it becomes available on exchanges. Hereâs how it typically works:
1. **Announcement**: A new cryptocurrency project announces it will release a token through an Initial Exchange Offering (IEO).
2. **Pre-Market Phase**: Before the token is distributed and listed on exchanges, the project might allow trading of the unreleased tokens on a decentralized platform. This lets early investors buy and sell these tokens.
3. **Price Discovery**: This trading helps establish a preliminary value for the token and gives a sense of market interest.
Some centralized exchanges (CEXes) also offer pre-market trading, acting as secure platforms for these transactions.
In short, crypto pre-markets provide a way for traders to get involved early, speculate on future prices, and help set initial valuations for new tokens.
