Solana-Based Crypto Exchange Drift Plans Pre-Launch Market for New Tokens

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Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.

There's soon to be a marketplace on Solana for trading tokens that don't yet exist.blockchain – plans to expand into"pre-launch markets," too, with a service that lets traders bet on the price of tokens before they start officially trading.

But these so-called governance tokens are fundamentally financial assets. They trade on unregulated exchanges where buyers and sellers are filled – often chaotically – by market makers and algorithms. The first moments of their trading lives are often highly volatile. How does one price an asset that didn't exist before?

"If it's an efficient market it should price well enough to launch close to the starting price," she said in a recent interview with CoinDesk conducted over Telegram. Drift is putting liquidation guardrails up that will stymie runaway prices, according to a blog post. It will also require traders to settle up any debts they've accrued on other trading products, some of which allow for risky leveraged positions.

 

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