KuCoin Pre-Market Trading AMA — What Is It and How Does It Work?

2023/10/20 14:00:10

Dear KuCoin Users,

Time: October 19, 2023, 12:00 PM - 1:03 PM (UTC)

KuCoin hosted an AMA (Ask-Me-Anything) session with the Head of Pre-Market Trading Operations, Ben Lee, in the KuCoin Exchange Group.

Official Landing Page: https://www.kucoin.com/aptp

Join the Pre-Market Trading Telegram group.

Q&A from KuCoin to the Pre-Market Trading Team

Q: What is the difference between Pre-Market Trading and IEO? Can we deposit/withdraw our tokens from Pre-Market Trading and move them to another wallet or exchange?

Ben: 1. Nature & Purpose:

Pre-Market Trading: It provides early access to trade tokens before officially being listed. It's a chance to buy/sell based on expected future values.

IEO (Initial Exchange Offering): This token sale is hosted on an exchange platform. The tokens are offered to investors via IEOs before being listed on the main exchange.

2. Engagement:

Pre-Market Trading: It's P2P. You're directly interacting with another user, setting prices, and agreeing to trade.

IEO (Initial Exchange Offering): You buy directly from a project or issuer, not another user.

3. Duration:

Pre-Market Trading: This might last a shorter period, ending just before the official listing.

IEO (Initial Exchange Offering): This can be a one-time event or a few days, depending on the project and exchange.

These are the differences between Pre-Market Trading and IEOs.

Q: Does Pre-Market Trading impact the token's listing price? What will happen if the token's Pre-Market Trading price exceeds its price on the official listing date?

Ben: While Pre-Market trades give us an idea of market expectations, a wider range of factors influence the official listing price.

One thing to remember: both the Pre-Market and the official listing prices are set by market dynamics.

Sometimes, there might be a direct link between the two. It is always best to keep an eye out and stay informed!

Q: What is the difference between Pre-Market, Spot, and Future Trading?

Ben: 1. In Pre-market Trading, there's no leveraged trading involved.

2. Pre-Market Trading is all about P2P – a direct transaction between buyers and sellers. And here's the twist: the underlying assets get delivered post-listing, unlike in spot trading, where you deal with assets in the secondary market. In short, each trading mode offers its unique features and experience.

3. However, market risks still exist. It's important to note that the value of a token can fluctuate between the Pre-Market trading and its official listing. Conducting thorough research and preparing for such scenarios is crucial (DYOR).

Q: Does KuCoin take any measures to ensure that the parties involved in the transaction adhere to the agreement and do not back out?

Ben: To ensure a smooth and trustworthy transaction, KuCoin has several measures in place for the Pre-Market Trading platform:

1. Deposit: Users must pay for a deposit before any transaction. Ensure that both the buyer and seller have skin in the game.

2. Collaterals: For sellers, especially, collateral is in place. So, if they don't deliver, the buyer will get compensation and the collateral back. That's a safeguard!

3. User Guidelines and User Agreement: KuCoin has set comprehensive user guidelines and User Agreements which everyone must adhere to. Please ensure everyone knows the dos and don'ts. Always remember that KuCoin is committed to providing a secure and trustworthy platform for all traders!

Q: What advice would you give to users who are new to KuCoin Pre-Market Trading?

Ben: Well, for all the fresh faces diving into Pre-Market Trading on KuCoin, here are some golden nuggets for you!

1. DYOR: Do your research before hopping into any trade! Understand the token, its utility, and its potential.

2. Understand the Mechanism: Pre-Market isn't your usual spot or futures market. It's P2P, and the assets are delivered post-listing. So, grasp the mechanism!

3. Stay Updated: KuCoin frequently updates guidelines and announces promos. Stick close to official channels to stay in the know.

4. Trade Wisely: While Pre-Market offers a brand-new platform to assess the market early, any trading comes with risks. Trade responsibly! Dive in, explore, and make the most of the KuCoin Pre-Market Trading experience. Happy trading, and always stay savvy!

Free-Ask from the KuCoin Community to the Pre-Market Trading Team

Q: How does KuCoin handle the initial assessment of new tokens or currencies before they are approved for Pre-Market Trading, and what factors are considered in this evaluation?

Ben: It is a good question. Pre-market trading is currently open for projects with a massive user base and big market capitalization. However, it's still an experimental product, and I cannot reveal more details about the criteria.

Q: What are the future plans and developments for the Pre-Market feature on KuCoin, and how does it fit into the broader strategy of the exchange?

Ben: User experience is always our top priority, and we plan to build a universal market product for them. If there is a new user demand, we will turn it into a product to help resolve concerns.

Q: How does KuCoin handle disputes between buyers and sellers in the Pre-Market?

Ben: At KuCoin, we aim to ensure a smooth and reliable trading experience. To minimize disputes in Pre-Market Trading:

1. Robust Rules & Guidelines: We've established clear guidelines that both buyers and sellers must follow.

2. Advanced System Infrastructure: Our technology is designed to safeguard user's interests and ensure transparent, hassle-free trades.

3. Education & Communication: We constantly encourage our community to understand our platform's operations and significantly reduce misunderstandings.

4. Dedicated Support: Should any issue arise, our team is at the forefront to address and resolve it promptly.

Q: What measures are in place to prevent price manipulation and maintain market integrity during Pre-Market Trading?

Ben: Since it's a P2P market, the buyers and sellers will determine the price in market dynamics. It's not continuous trading, so it's hard to say there's a manipulation since no one owns the token yet. The product is built to help users who want early access to the market, so it's very different from our regular trading market.

Q: How does KuCoin determine the initial price of tokens in the Pre-Market?

Ben: The buyers and sellers determine prices in the Pre-Market. They can set their quotas, which may differ from the prices once the token is officially listed. Please note that KuCoin does NOT participate in any trades while providing a good product for all users.

KuCoin Pre-Market Trading AMA Giveaway Section

KuCoin Pre-Market Trading had prepared a total of 500 USDT to give away to AMA participants.

1. Pre-AMA activity: 50 USDT

2. Free-ask section: 50 USDT

3. Gleam Task: 400 USDT.

Sign up for a KuCoin account if you haven’t done so yet, and ensure you complete your KYC3 verification to be eligible for the rewards.

Follow us on Twitter, Telegram, Facebook, Instagram, and Reddit.