CoinEx is excited to announce the launch of Pre-Token Trading, an innovative service designed to revolutionize the way users engage with cryptocurrencies. This groundbreaking platform enables pre-minting, trading, and delivering of PreTokens by staking assets, allowing users to capitalize on opportunities before popular new tokens or major events are officially released.
Understanding CoinEx Pre-Token Trading and How It Works
Pre-token trading is designed to facilitate the creation and exchange of PreTokens—tokens that are not officially recognized as genuine assets of any project. Instead, these PreTokens are settled with collateral, typically in USDT (Tether), at a fair price upon delivery. This unique feature allows users to speculate on upcoming events or assets that have yet to be listed on traditional exchanges.
The process of pre-token trading involves several key roles:
- Pre-minters: Users who stake their assets to create PreTokens.
- Holders: Users who purchase these PreTokens during the trading phase.
- CoinEx Delivery: The platform that facilitates the final delivery of settled PreTokens. In this process, all pre-minting, redeeming, and trading services will be terminated.
The process begins when users stake assets, USDT, to pre-mint PreTokens. For instance, a user might issue a "PRE_TRUMP" PreToken in anticipation of the U.S. presidential election results. Once the pre-token trading starts, all users including pre-minters can buy or sell these tokens in a spot market environment akin to regular trading procedures.
The delivery process for PreToken trading comprises two primary roles: pre-minters and holders. For pre-minters, the delivery amount is calculated by subtracting the final pre-minted amount, multiplied by the delivery price and the 1% delivery fee, from the staked amount. Upon calculation, the tokens are delivered directly to the user’s spot account.
For holders, the position delivery amount is determined by multiplying the position amount by the delivery price and subsequently subtracting the applicable delivery fee. Similar to pre-minters, holders are also subject to a 1% delivery fee.
Pre-Token Trading Fee Structure (in USDT):
- Pre-minting: Free
- Trading: Spot market rates, with VIP discounts applicable
- Redeeming: 2%, based on the latest futures market price × redeeming amount
- Delivery:
- Pre-minters: Delivery price × pre-minted amount × 1%
- Holders: Delivery price × held amount × 1%
CoinEx reserves the right to deliver PreTokens earlier than scheduled under specific conditions, such as when the off-platform market price significantly exceeds the pre-minted price or in response to unforeseen circumstances or early announcements pertaining to the PreToken event.
Highlights and Benefits
Pre-token trading offers several key advantages, including a simplified user experience where participants can choose to be either pre-minters or holders, catering to various trading strategies. It also provides versatile applications, allowing users to create PreTokens for both unreleased projects and upcoming events. Additionally, the platform incorporates comprehensive risk management by monitoring market prices outside CoinEx, enabling early settlements when necessary to safeguard user interests.
- Simplified User Experience: Users can choose to be either pre-minters or holders, making it accessible for various trading strategies.
- Versatile Applications: Users can create PreTokens for both unreleased projects and upcoming events.
- Comprehensive Risk Management: By monitoring market prices outside CoinEx, early settlements can protect user interests.
Risks Associated with Pre-Token Trading Volatility, Liquidity, and Market Manipulation
Pre-token trading, while offering exciting potential for investors, carries significant risks. One of the potential is high volatility, as PreToken prices can experience dramatic fluctuations driven by speculation around upcoming projects or events. Additionally, there is a liquidity risk since these tokens are not actual assets, and some PreTokens may struggle with finding buyers or sellers, making it difficult to exit positions. Moreover, the risk of market manipulation is higher in smaller or less regulated markets, where large traders can influence prices, leading to potential mispricing and unexpected losses for retail investors.
Impact of Pre-Token Trading on CoinEx Ecosystem
Pre-token trading represents a significant step forward for CoinEx, it is also a good expansion for the CoinEx ecosystem, reinforcing its role as a leading cryptocurrency exchange while providing users with new opportunities for profit and engagement in a rapidly evolving market.
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