The XT exchange has announced the pre-market over-the-counter (OTC) trading opportunity for UNION (Union Build), allowing users to engage in early transactions before the official spot trading begins. This initiative provides a chance for early adopters to explore price discovery and accumulate tokens ahead of the public listing.
Pre-market OTC trading for UNION will commence on July 2, 2025, at 17:00 (UTC+8). The exact settlement time will be available on the trading details page. This period allows buyers and sellers to interact in a peer-to-peer environment, negotiating prices and executing orders based on mutual agreement.
What Is UNION (Union Build)?
Union Build is a project focused on building a zero-knowledge proof (ZK) infrastructure layer. It aims to enable universal message passing, asset transfers, NFT bridging, and DeFi interoperability. The native token, denoted as $U, will be an ERC-20 compatible token on the Ethereum blockchain.
Community engagement has been central to its development. Participants in the testnet accumulated XP points, which can be exchanged for $U tokens upon the mainnet launch. This approach emphasizes community-driven growth and decentralized participation.
How Does Pre-Market OTC Trading Work?
Pre-market OTC trading on XT allows users to trade tokens before they are officially listed on the spot market. It operates through a peer-to-peer (P2P) model, giving participants freedom in pricing and order placement.
P2P Order Matching
Users can create orders at their desired price and quantity or choose from existing orders. This system promotes market-driven price discovery, allowing buyers and sellers to determine value organically.
Settlement Process
Sellers must hold the required amount of tokens before settlement. Once an order is matched, the exchange facilitates a secure "one-hand-pays, one-hand-delivers" process. If a party fails to fulfill their obligation, a collateral mechanism compensates the affected user.
Transaction Security
To ensure reliability, the system freezes both parties' funds upon order placement. This acts as a guarantee for execution. In case of default, the frozen collateral is used for automated compensation, reducing counterparty risk.
Benefits of Pre-Market OTC Trading
Engaging in pre-market OTC trading offers several advantages:
- Early Access: Secure tokens at potentially lower prices before official market listing.
- Market-Driven Pricing: Determine token value through decentralized negotiation instead of fixed initial pricing.
- Liquidity Assurance: Frozen assets ensure that orders are executed smoothly and efficiently.
- Reduced Risk: The collateral mechanism protects users from defaults and fraudulent activities.
- Community Engagement: Encourages active participation and builds momentum ahead of the token’s official launch.
👉 Explore pre-market trading strategies
Risk Management Considerations
While pre-market trading offers opportunities, it also involves risks. Not all pre-listed tokens will necessarily proceed to spot trading. If a project fails to meet obligations or displays high-risk behavior, XT reserves the right to delist the token and cancel all pending orders. In such cases, frozen funds will be returned to users without any processing fees.
It is essential for participants to conduct independent research and understand project fundamentals before engaging in pre-market activities.
Frequently Asked Questions
What is pre-market OTC trading?
Pre-market OTC trading allows users to buy and sell tokens before they are listed on the spot market. It uses a peer-to-peer model where participants set their own prices and terms.
How is settlement handled in pre-market trades?
After orders are matched, the system automatically facilitates the exchange of funds and tokens. Sellers must hold the tokens beforehand, and both parties’ funds are frozen until settlement is complete.
What happens if a seller fails to deliver tokens?
The platform’s collateral mechanism compensates the buyer using the seller’s frozen funds. This ensures that participants are protected against default.
Can pre-market trading guarantee spot listing?
No. Pre-market availability does not guarantee eventual spot listing. Projects may be delisted due to compliance issues, risks, or failure to meet exchange requirements.
Is pre-market trading suitable for beginners?
This form of trading involves higher risk and requires market knowledge. Beginners should research thoroughly and consider their risk tolerance before participating.
How can I stay updated on UNION’s developments?
Follow official project channels and the XT exchange announcements for the latest information on mainnet launch, token distribution, and trading updates.
Pre-market OTC trading offers a flexible and early-entry avenue for cryptocurrency enthusiasts. With structured risk controls and a community-oriented approach, it represents an innovative step in digital asset trading. Always prioritize due diligence and use reliable platforms for a secure trading experience.