Introduction

This article introduces Gate.io’s Pre-Market service, which allows investors to trade before new tokens are officially listed. By staking USDT to mint PreTokens, users can invest in advance and gain potential returns. This article explains the definition, mechanism, advantages, and delivery and settlement process of Pre-Market, highlighting its features of enhanced flexibility and liquidity. Finally, it is reminded that all users should understand the relevant rules when they are participating in Pre-Market to reduce risks and achieve returns.

In the cryptocurrency market, investors always aim to participate in new projects as early as possible, hoping for obtaining substantial returns once the token is officially listed. Gate.io, a well-known cryptocurrency trading platform, has launched an innovative “Pre-Market” service to help users to get involved in new projects in advance. This article will provide a detailed introduction about Gate.io’s Pre-Market , including its definition, mechanism, advantages, and related precautions.

1. What is Pre-Market?

Pre-Market is a service offered by Gate.io that allows users to trade tokens before they are officially listed in the spot market. Users can stake USDT to mint PreToken, which serves as token credential for projects listed in Pre-Market and can be traded in the PreToken spot market. However, it is not withdrawable or transferable. This allows users to invest in projects before their tokens are officially listed and thus give users early access to potential earning opportunity.

2. Advantages of Pre-Market

Pre-Market offers significant advantages for the investors:

• Earn the profit in advance : Compared to the traditional Pre-Market OTC trading, which only allows settlement at the time of delivery, Gate.io’s Pre-Market allows users to realize profits earlier through the PreToken spot market. Buyers can simply buy low and sell high to take profit and exit, without waiting for settlement.
• Enhanced liquidity : Gate.io’s innovative PreToken spot market model breaks the limitations of traditional OTC orders, greatly enhancing market liquidity. Buyers and sellers can quickly complete the transactions, improving the overall trading experience.

3. How does Pre-Market Work?

The Pre-Market trading is quite simple: after the project is added on Pre-Market, users can choose to stake USDT to mint PreTokens or directly buy or sell already minted PreTokens in the PreToken spot market. Approaching the token’s official listing date, the minting service and the PreToken spot market will be closed. The system will take a snapshot of the PreTokens users are holding and clear the balance in preparation for settlement.

For sellers in the Pre-Market, profits are typically earned by staking USDT to mint PreTokens and selling them. During the settlement period, the sellers must have the real tokens ready for delivery. After successful delivery, the platform will return the staked USDT to the user’s spot account. If delivery fails, they won’t get their staked assets back.

For buyers in the Pre-Market, after purchasing PreTokens in the PreToken spot market, they can either sell the PreTokens before the market closes to take profit or hold them for the settlement. After settlement, holders will receive tokens delivered by minters and assets forfeited due to failed delivery.

4. PreToken Spot Market

The PreToken spot market is a place for users to trade PreTokens before the token is officially listed in spot markets, offering investors the flexibility to adjust their strategies and potentially achieve the investment returns.

5. Delivery and Settlement

Minters need to deliver the real tokens to reclaim their staked assets. Once delivery begins, the users have to leave enough real token in their spot account for delivery. They can either deposit or purchase the amount of real tokens needed and wait for the completion of the delivery. The system will deduct the real tokens from their account and return the staked assets and complete the delivery. If minters fail to deliver the amount needed timely, they cannot get their staked assets back.

Users who hold the PreTokens need to wait for the settlement. Once the settlement is completed, they will receive the real tokens and any staked assets from failed deliveries. If all the minters complete delivery, holders will receive the same amount of token as recorded in the snapshots; however, if all minters fail to deliver, the staked assets will be divided proportionally and sent to the holders.

6. Conclusion

Overall, Gate.io’s Pre-Market offers users an attractive investment opportunity, allowing the investors to engage in token trading before the tokens are officially listed. However, before participating in Pre-Market, you should understand the relevant rules and strictly follow the delivery and settlement requirements to reduce losses due to default on delivery. Gate.io’s innovative Pre-Market brings more diversified investment options to the cryptocurrency market and provides our users with new profit opportunities.