#Gate上线Pre-IPOs Gate.io recently launched the Pre-IPO / Pre-Market (pre-market trading) section. In essence, it brings the traditional primary-market logic of “initial offerings” and “equity subscriptions” into the crypto world, allowing retail investors to place bets on assets that are not yet listed before tokens are officially launched.

1. Gameplay mechanism: Use USDT to buy “the future”

Trading targets: Mainly covers mainstream tokens that have not yet been officially launched (such as ZORA, WAI, etc.) and some equity-like assets. Some projects are traded in the form of “Points” first; after listing, they are exchanged for tokens according to the rules.

Operation process: Users need to generate PreTokens (pre-trading certificates) by staking USDT in the Pre-Market section, or directly place buy/sell orders in the OTC market. Once the tokens are officially launched, the system performs settlement and PreTokens are exchanged for real assets proportionally.

Pricing logic: Prices are determined entirely by market supply and demand. Due to low liquidity before listing, prices can fluctuate drastically, and it is common to see premiums or discounts compared with the initial offering price.

2. Differences from Startup

Startup (IEO): It is a “subscription” model. Users participate through a fixed price or a lottery, similar to IPOs, with relatively uniform entry thresholds.

Pre-IPO / Pre-Market: It is a secondary market trading model. You can buy and sell PreTokens at any time; the price fluctuates in real time. It’s more like a high-risk game played before the token “is born.”

3. Opportunities and risks

Opportunities: Build positions before the spot market opens. If you bet on popular projects correctly, there may be arbitrage space after listing; at the same time, it provides early investors with a liquidity exit channel.

Risks:

High premium risk: Pre-market prices are often pushed up by sentiment. If the official opening price is lower than your buy price, you will directly incur a loss.

Liquidity trap: Pre-Market depth is relatively shallow, making it difficult for large funds to close positions in a timely manner.

Settlement failure risk: If the project ultimately cannot launch as scheduled, PreTokens may face zero value or long-term lock-up.

Compliance: It involves over-the-counter trading of unlisted equity/tokens, and in some jurisdictions (including China Mainland) there are clear compliance restrictions. Before participating, be sure to confirm local policies.