New Crypto Trend: Trading Tokens Before Release

New Crypto Trend: Trading Tokens Before Release

A new trend is taking off in the cryptocurrency community — as investors start to purchase tokens before waiting for them to hit the markets.

In a fast-paced industry, being an early investor is a crucial step as it allows individuals to potentially capitalize on significant price appreciation as innovative projects gain traction and adoption.

And now, investors are finding ways to start buying before the firing pistol has signaled the start of the race.

Here’s everything you need to know.

Key Takeaways

  • Investing in tokens before their release allows investors to potentially benefit from significant price increases as projects gain traction.
  • Platforms like AEVO and Hyperliquid have introduced new opportunities to speculate or hedge against future token prices, marking a shift from traditional ICOs to more dynamic pre-token trading environments.
  • Pre-token and point market sales have seen $50 million in trades despite low liquidity.
  • The pre-token and point markets are heavily dominated by buyers, a sign of potential investor confidence.
  • Despite the enthusiasm and high trading volumes, these markets face challenges such as lower liquidity and higher volatility compared to post-TGE markets.

Pre-Token & Point Markets Take Off

Until recently, investors could purchase cryptocurrencies prior to their official launch through their initial coin offering (ICO), a fundraising mechanism used by new decentralized finance (DeFi) projects to raise capital by selling tokens to investors prior to a project’s full development.

This allows anyone to speculate on or hedge against the price of a token before its launch, creating a new era of crypto investing.

In short, pre-token and point markets are platforms that allow people to buy or sell the promise of receiving tokens or points at a future date, often before the official release of the token.

Such markets are divided into two main types: one where trades are settled with cash and another where the actual tokens or points are exchanged. Such a setup lets investors speculate on the future value of tokens or points, potentially profiting from changes in their price before they become available.

According to Anndy Lian, an inter-governmental blockchain adviser, by participating in pre-sales, investors get the opportunity to directly support the development and growth of new projects, as well as create a sense of community and alignment with the project’s goals.

He said:

“This community effect can drive demand as more people become involved and invested in the token’s success. Effective marketing campaigns can generate significant hype around a token before its release, leading to increased demand as investors don’t want to miss out on what is being promoted as a promising opportunity.”

A Keyrock report released on April 30 uncovered that the crypto community has seen a notable surge in interest and participation in these pre-tokens and point markets with $50 million already being traded.

This high level of activity reflects a growing enthusiasm among investors to engage with new crypto projects at an early stage.

The markets predominantly cater to buyers, with the majority of orders coming from users eager to purchase tokens or points ahead of their public release. This eagerness is driven by the potential for high returns on investments as token values can increase significantly upon official launch.

Pre-token & Point Markets See Higher Buyer Dominance

According to the Keyrock report, the markets showed a pronounced buyer dominance, with most tokens analysed displaying a higher buying than selling volume.

This trend suggested that investors were more interested in acquiring tokens rather than selling them, believing in the potential for token value appreciation after their Token Generation Event (TGE).

The report highlighted:

“Most tokens exhibit a buying volume significantly higher than the sell volume. Only 5 out of 57 tokens that have been traded on Whales Market show a selling volume that exceeds the buy volume. Participants in Whale Markets demonstrate a strong preference for buying tokens, points, and runes.”

Data on buying vs selling tokens from Whales Market. Source: Keyrock Data Intelligence
Data on buying vs selling tokens from Whales Market. Source: Keyrock Data Intelligence

Data on buying vs selling tokens from Whales Market. Source: Keyrock Data Intelligence

Liquidity Remains Low

Despite optimistic trading volumes, pre-token and point markets still face challenges related to liquidity.

The Keyrock report highlighted that compared to traditional post-TGE markets, pre-token and point markets are relatively less liquid, meaning they have relatively fewer buyers and sellers, which could lead to price volatility and make it harder to execute larger orders without affecting the market price.

Additionally, sometimes the demand for a pre-release token is driven more by hype and marketing than by the project’s fundamentals, which could lead to an inflated valuation that does not reflect the token’s true worth, Lian explained.

“Projects that prioritize transparency, communication, and community trust are more likely to succeed in pre-release trading. Investors will gravitate toward projects they believe in.”

Technical issues could also serve as a major potential risk in purchasing cryptocurrencies before they fully launch since the technology behind the asset is only just being developed.

The Bottom Line

As the landscape of pre-token and point markets continues to evolve, strategic considerations and forward-thinking approaches are essential for both investors and project developers.

The surge in trading volumes and the enthusiasm observed in these markets suggest a robust interest in early-stage investment opportunities.

According to Lian, this has been an ongoing trend since the beginning of the crypto ICO period, and the act of trading tokens before their official release is likely to continue into the future as well. However, investors should exercise caution when investing in new projects and never invest money they cannot afford to lose.

 

Source: https://www.techopedia.com/news/exploring-crypto-pre-token-and-point-markets

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

Mad Lads’ Backpack Exchange surpasses $300M trading volume in 24 hours

Mad Lads’ Backpack Exchange surpasses $300M trading volume in 24 hours

The Solana-based Backpack crypto exchange reached the $300 million mark in less than 24 hours after the beginning of its pre-season beta launch, according to a Feb. 15 X post by Backpack. The exchange was launched by the creators of Solana’s Mad Lads executable nonfungible token (NFT) collection.

The popularity of the exchange is partly due to the Backpack ecosystem’s record-breaking Mad Lads xNFT collection and the potential of its underlying Solana blockchain, according to Anndy Lian, intergovernmental blockchain expert and author of the book NFT: From Zero to Hero. He told Cointelegraph:

“Backpack Exchange leverages the Solana blockchain, one of the fastest and most scalable platforms for decentralized applications […] Solana is also seen as a potential contender for the future of decentralized finance, or DeFi, which is a fast-growing sector of the crypto industry.”

Backpack registered 6,000 unique deposit transactions within 24 hours of its pre-season launch, according to a Feb. 13 X post by Armani Ferrante, the founder and CEO of Backpack.

The newly-launched exchange boasts impressive trading metrics, including one-millisecond order placement and sub-one millisecond order cancelation, according to Ferrante.

Backpack’s SOL/USDC spot trading pair reached over $643 million in 24-hour trading volume, overtaking the world’s largest exchange, Binance’s trading pair, which generated $2.4 million in 24-hour trading volume.

Backpack Exchange received a virtual asset service provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) in October 2023. The exchange bagged many other operational licenses across several jurisdictions worldwide in the last half of 2023.

Mad Lads become third-largest NFTs by daily volume

Following Backpack’s success, the 24-hour trading volume of Mad Lads NFTs rose 77.93% to over $1 million, becoming the third-largest collection by daily trading volume across all blockchain networks.

Solana’s sales volume rose 20.19% to $7.35 million, becoming the second-largest blockchain by daily NFT sales volume after Ethereum, which generated $18.28 million in 24-hour NFT sales volume, according to NFT data aggregator CryptoSlam.

 

 

 

Source: https://cointelegraph.com/news/mad-lads-backpack-300-m-trading-volume

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

Mad Lads’ Backpack Exchange Crosses $300 Million Trading Volume in 24 Hours

Mad Lads’ Backpack Exchange Crosses $300 Million Trading Volume in 24 Hours

According to Cointelegraph: Backpack, a crypto exchange based on the Solana blockchain, achieved a trading volume of $300 million within 24 hours of its pre-season beta launch. This significant milestone was declared in a Feb 15th post by the Backpack team following the successful launch of the exchange. Backpack was ushered in by the founders of Solana’s Mad Lads, a popular nonfungible token (NFT) collection.

The exchange’s popularity is attributed both to the success of the Mad Lads xNFT collection and to the potential of the Solana blockchain platform. Blockchain expert Anndy Lian credits the Solana blockchain for its remarkable speed and scalability, making it a potential future heavyweight in the world of decentralized finance (DeFi).

The founder and CEO of Backpack, Armani Ferrante, reported 6,000 unique deposit transactions within the first 24 hours of the exchange’s pre-season launch. Trading features include one-millisecond order placement and sub-one millisecond order cancellation. Backpack’s SOL/USDC spot trading pair achieved over $643 million in 24-hour trading volume, surpassing Binance’s trading pair, which stood at $2.4 million.

Backpack received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) in October 2023. Additionally, the exchange secured numerous other operational licenses across multiple jurisdictions in the latter half of 2023.

Following the launch, the Mad Lads NFTs reported a rise in their 24-hour trading volume by 77.93% to over £1 million, making it the third-largest collection by daily volume across all blockchain networks.

 

Source: https://www.binance.com/hu/feed/post/4197002116281

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j