“The stock is not yet listed, but the contract has already arrived.”
On September 22, Binance launched the MOONSHOT USDT-based Pre-IPO perpetual contract, which targets Kimi's parent company — Dark Side of the Moon.
The company has not formally IPOed yet, and the proposed listing exchange is the Hong Kong Stock Exchange, but users can already trade the corresponding contracts on Binance, with a maximum leverage of 20 times, and 24/7 trading supported.
What exactly is going on?
First Understand: What Exactly Are You Trading?
Let's clarify a few terms.
MOONSHOT refers to the Dark Side of the Moon, which is the company behind Kimi.
Pre-IPO, as the name suggests, is trading products before the company is officially listed.
This time, Binance has launched a perpetual contract that has no expiration date, allowing for both long and short positions, with margin and settlement using USDT.
The most confusing point here is: Buying a MOONSHOT contract does not equal buying shares of Dark Side of the Moon.
Dark Side of the Moon has not publicly listed its stock yet, so what users are actually trading is a derivative related to it. Price fluctuations reflect the market's judgment on the company's future price.
If Dark Side of the Moon completes its IPO later on, Binance will transition this Pre-IPO contract into a standard TradFi perpetual contract according to the rules; if the IPO is ultimately not completed, the related contracts may also be removed.
Moreover, Pre-IPO is not something newly introduced by Binance; similar products have existed before. However, this time, the underlying asset has changed to Kimi's parent company Dark Side of the Moon, which has attracted particularly high attention.
Why Do Traditional Financial Assets Appear on Binance?
Here we need to understand a term: TradFi.
TradFi stands for Traditional Finance.
Stocks, gold, foreign exchange, bonds, indices, ETFs, all belong to this category.
Now, the intersection between traditional finance and the crypto market is increasing: the underlying can be traditional financial assets, while the trading instruments use derivatives familiar in the crypto market, such as perpetual contracts.
MOONSHOT is an example.
Additionally, Pre-IPO has a special point: the company is not yet listed, and there is no publicly available stock price to directly reference.
Therefore, the transaction price of the contracts will play a greater role in price discovery. The progress of the IPO, market expectations, changes in valuation, and whether the IPO can ultimately be completed may all affect the price.
How Should Newcomers View These Types of Products?
When seeing TradFi products for the first time, there is no need to rush to memorize a bunch of terms.
First, consider four things:
- What is the underlying asset? Stocks, gold, or companies that are not yet listed?
- What is being traded? Spot or derivatives?
- How is it settled? USDT or other assets?
- Where are the risks? Price fluctuations, leverage, forced liquidation, funding rates, liquidity, and the unique uncertainties related to Pre-IPO listing.
Understanding these questions will essentially clarify what you are trading.
Want to Explore More about TradFi?
If this is your first encounter with such products, you can first register on Binance, download the App and enter TradFi to explore what traditional financial-related products are available.
👉 Binance Registration Link:
https://jump.do/zh-Hans/xlink-proxy?id=3
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Don't just look at MOONSHOT. Comparing stocks, indices, gold, foreign exchange, and other products together will make it easier to understand how traditional financial assets are entering the crypto market.
In Conclusion
Looking at the case of MOONSHOT, the distance between TradFi and Crypto is narrowing.
In the past, we used to consider stocks, gold, and BTC as different markets; now, traditional financial assets can also enter crypto trading platforms through derivatives and other means.
For newcomers, understanding the underlying assets, trading tools, settlement methods, and risks is more important than rushing to trade.
Here's a little bonus:
Recently, new registered users can contact customer service to receive a 3-day AiCoin member feature experience.
👉 Binance Registration Link:
https://jump.do/zh-Hans/xlink-proxy?id=3
(Invitation code: aicoin668, enjoy a 10% rebate)
Specific conditions and rules for collection shall be subject to the actual registration by customer service.
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Risk Warning: Digital asset and derivative prices can be highly volatile, and leveraged trading carries higher risks. Please fully understand product rules before participating cautiously. This article is for information sharing only and does not constitute investment advice.
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