▸ $BORPA hit 20x on @WhalesMarket
▸ $EL/$ZRO traded at $9 & $4.9 on @HyperliquidX
Wtf going on? These tokens haven't even launched!
Master Pre-Market Trading in 3 mins. 🧵⬇️
▸ $EL/$ZRO traded at $9 & $4.9 on @HyperliquidX
Wtf going on? These tokens haven't even launched!
Master Pre-Market Trading in 3 mins. 🧵⬇️
Before we start, this thread will contain invaluable insights. Don't forget to bookmark the first tweet. ✅
It's a should for later reference! Thank you!
It's a should for later reference! Thank you!
Pre-market trading is an OTC service for trading new tokens before the official listing.
It lets buyers and sellers set quotes and match transactions at desired prices.
It lets buyers and sellers set quotes and match transactions at desired prices.
Pre-Market Trading in Crypto
Pre-market trading allows users to trade coins/tokens before they are officially launched or listed in the crypto market.
Unlike traditional markets, there are no specific pre-opening hours due to the 24/7 nature of crypto.
Pre-market trading allows users to trade coins/tokens before they are officially launched or listed in the crypto market.
Unlike traditional markets, there are no specific pre-opening hours due to the 24/7 nature of crypto.
Thus, pre-market spot transactions are similar to regular spot transactions.
However, the difference is that when an order is matched, the buyer will not receive the tokens and the seller will not receive the money immediately.
However, the difference is that when an order is matched, the buyer will not receive the tokens and the seller will not receive the money immediately.
Pre-market trading involves projects that haven't launched but will have tokens available many months prior.
There are two main types:
📌 | Pre-market Perpetual
📌 | Pre-market Trading (OTC)
There are two main types:
📌 | Pre-market Perpetual
📌 | Pre-market Trading (OTC)
📌 | Pre-market perpetual
Perp futures trading in DEX is innovating high-leverage trading for airdrop tokens.
Pre-launch perpetuals are derivatives for tokens not yet launched, letting users take long/short positions without owning the asset.
Perp futures trading in DEX is innovating high-leverage trading for airdrop tokens.
Pre-launch perpetuals are derivatives for tokens not yet launched, letting users take long/short positions without owning the asset.
Key components of pre-launch perpetuals:
▸ Index Price: The average asset price on major exchanges
▸ Funding Rate: Fees between long and short positions based on spot and futures market differences
▸ Mark Price: Calculated from the actual bid/ask volume on the exchange
▸ Index Price: The average asset price on major exchanges
▸ Funding Rate: Fees between long and short positions based on spot and futures market differences
▸ Mark Price: Calculated from the actual bid/ask volume on the exchange
Post-launch, spot price (index price) and funding rate info will become active.
Exchanges will convert pre-market contracts into perpetual futures.
For example, Hyperliquid uses a daily moving average of the tick price for the funding rate.
$ZRO pre-launch futures trading ⬇️
Exchanges will convert pre-market contracts into perpetual futures.
For example, Hyperliquid uses a daily moving average of the tick price for the funding rate.
$ZRO pre-launch futures trading ⬇️
Airdrop activities draw significant community attention to token valuation and potential user earnings.
Pre-market futures trading can generate over $1m daily for exchanges.
Users in good pre-market positions can still profit highly without receiving an airdrop.
Pre-market futures trading can generate over $1m daily for exchanges.
Users in good pre-market positions can still profit highly without receiving an airdrop.
📌 | Pre-market Trading (OTC)
Pre-market trading allows for OTC trading of tokens before their official launch, suiting investors who prefer owning assets over price speculation.
To engage, investors create or agree to buy/sell orders with set prices and token amounts.
Pre-market trading allows for OTC trading of tokens before their official launch, suiting investors who prefer owning assets over price speculation.
To engage, investors create or agree to buy/sell orders with set prices and token amounts.
Two main projects exemplify different models:
1. Whales Market: Uses smart contracts for decentralized OTC transactions.
2. Bybit Pre-market: Offers OTC trading on a CEX.
1. Whales Market: Uses smart contracts for decentralized OTC transactions.
2. Bybit Pre-market: Offers OTC trading on a CEX.
Both markets work similarly: buyers and sellers fill out pre-market orders and deposit collateral.
At TGE, sellers transfer tokens to buyers in exchange for the buyer's collateral.
If a seller defaults, the buyer gets a percentage of the seller's collateral as compensation.
At TGE, sellers transfer tokens to buyers in exchange for the buyer's collateral.
If a seller defaults, the buyer gets a percentage of the seller's collateral as compensation.
The seller has more control by holding the token.
Sellers in OTC pre-market transactions essentially buy a token put option with:
▸ Execution price (X)
▸ Underlying asset price (S)
▸ Compensation percentage
Sellers in OTC pre-market transactions essentially buy a token put option with:
▸ Execution price (X)
▸ Underlying asset price (S)
▸ Compensation percentage
📕 | Example:
A agrees to sell B 100 XYZ tokens at $1 each, depositing 100 USDT as collateral.
▸ If the XYZ token rises to $1.5 at TGE, A keeps the tokens and pays a 20% fine on the collateral, netting $30.
A agrees to sell B 100 XYZ tokens at $1 each, depositing 100 USDT as collateral.
▸ If the XYZ token rises to $1.5 at TGE, A keeps the tokens and pays a 20% fine on the collateral, netting $30.
▸ If the price drops to $0.5, A sells the tokens, making $50 without losing the compensation fee.
This strategy allows the seller to be proactive, hedge risks, and avoid the option purchase fee. It's known as a 'Protective Put' in financial markets.
This strategy allows the seller to be proactive, hedge risks, and avoid the option purchase fee. It's known as a 'Protective Put' in financial markets.
$BORPA - a meme token built by @Entanglefi.
They had a successful WL Public Sale some days ago.
The hype is insane - $BORPA was traded even in 20X on Whales Market.
They had a successful WL Public Sale some days ago.
The hype is insane - $BORPA was traded even in 20X on Whales Market.
Below is the Bybit Pre-Market Trading.
As you can see, $0.62 is the last traded price of a $AVAIL.
Note: If you plan to engage in pre-market trading, ensure you have adequate funds beforehand and can complete the transaction within the specified timeframe.
As you can see, $0.62 is the last traded price of a $AVAIL.
Note: If you plan to engage in pre-market trading, ensure you have adequate funds beforehand and can complete the transaction within the specified timeframe.
Yes, pre-market trading also has both Pros and Cons
🟢 | Advantages:
For Projects:
- Determine token prices, market supply, and demand
- Boost token recognition
For Users:
- Secure good positions
- Acquire tokens early
🟢 | Advantages:
For Projects:
- Determine token prices, market supply, and demand
- Boost token recognition
For Users:
- Secure good positions
- Acquire tokens early
For Exchanges:
- Increase transaction volume and fee revenue
- Attract new users
- Boost exchange token incentives (if applicable)
- Increase transaction volume and fee revenue
- Attract new users
- Boost exchange token incentives (if applicable)
🔴 | Disadvantages:
- Low liquidity
- Higher price volatility
- Unclear token information, leading to mispricing
- Mainly limit orders
- Possible price discrepancies between exchanges
- Low liquidity
- Higher price volatility
- Unclear token information, leading to mispricing
- Mainly limit orders
- Possible price discrepancies between exchanges
💁🏼♂️ | Personal Sentiment
Pre-market trading offers investors new perspectives and experiences.
While still novel in the crypto market, it provides significant benefits to participants.
Pre-market trading offers investors new perspectives and experiences.
While still novel in the crypto market, it provides significant benefits to participants.
I hope you enjoy my thread about the Pre-market.
The thread is inspired by:
▸ Coin98 Insights
▸ Investopedia
For more insights and valuable threads, join my Telegram channel: t.me
The thread is inspired by:
▸ Coin98 Insights
▸ Investopedia
For more insights and valuable threads, join my Telegram channel: t.me
Special mention to some Big Brainors.
❯ @the_smart_ape
❯ @Hercules_Defi
❯ @Haylesdefi
❯ @leshka_eth
❯ @CryptoStreamHub
❯ @belizardd
❯ @splinter0n
❯ @DeRonin_
❯ @0x99Gohan
❯ @alphabatcher
❯ @the_smart_ape
❯ @Hercules_Defi
❯ @Haylesdefi
❯ @leshka_eth
❯ @CryptoStreamHub
❯ @belizardd
❯ @splinter0n
❯ @DeRonin_
❯ @0x99Gohan
❯ @alphabatcher
More Big Brain:
❯ @cyrilXBT
❯ @eli5_defi
❯ @CryptMoose_
❯ @Beacon_Early
❯ @izu_crypt
❯ @TheDeFiPlug
❯ @CryptoGideon_
❯ @arndxt_xo
❯ @zeuuss_01
❯ @RubiksWeb3hub
❯ @cyrilXBT
❯ @eli5_defi
❯ @CryptMoose_
❯ @Beacon_Early
❯ @izu_crypt
❯ @TheDeFiPlug
❯ @CryptoGideon_
❯ @arndxt_xo
❯ @zeuuss_01
❯ @RubiksWeb3hub
I put lots of effort into making this thread. If you find it useful, consider:
❯ Follow me @0xAndrewmoh for more valuable content
❯ Like and comment with your thoughts on it.
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❯ Follow me @0xAndrewmoh for more valuable content
❯ Like and comment with your thoughts on it.
❯ Repost then others could benefit from it too
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