The $RED has been restricted from regular trading and this has been confusing for people, including myself, here is an analysis of the reasons and the actual launch date.
Restrictions
Binance has introduced a new feature where it sets a maximum price for the asset before its launch, as well as the number of assets an individual trader can buy.
For $RED , the price limit has been set to reach only 200% maximum on the first day, 300% on the second day, and 400% on the third day starting from a listing price of $0.2. Binance has also set the maximum number of assets one can purchase to 5000 $RED.
Please note that this is a new feature from Binance and that #Red is the first to be experimented on. The success and/or performance of this launch pool will determine whether it will continue to be used.
Purchase restrictions
This has been the main concern for many traders and has been a point of confusion as to why they cannot purchase the token even though they submitted valid requests. Yes! It's true, no one can buy the currency at this time until all restrictions are lifted. However, there are valid reasons for the restrictions, I have listed and explained the main reasons below:
Price discovery and market stabilization
Helps establish an initial market price in a controlled environment before full trading begins.
It prevents extreme price volatility and manipulation, ensuring a smoother transition when the market opens fully.
Liquidity setup
Users who obtained RED through Launchpool farming by staking $BNB
or USDC or FDUSD to start selling their tokens.
Market makers and liquidity providers can prepare for full trading.
Controlled demand and FOMO mitigation
The holding limit of 5000 RED and restricted price movements prevent early traders from rapidly driving up the price.
This deters extreme speculation and potential crashes at launch.
Regulatory compliance
Binance plans to use pre-market stages to comply with regulations and monitor trading behavior before allowing mass access.
What is the role of traders?
Many people consider this pre-market a waste of time because they can't even trade. I would like to ask you to look at this from the perspective of helping shape market dynamics by gathering market research data without the harshness of market forces during the launch. 😂😂
It is intended to mitigate and/or soften launch volatility by using traders as a benchmark.
Launch date
Binance announced that it will remove all restrictions on March 3, 2025, at 10:00 (UTC), including price limits and holding limits. It also stated that it will remove all trading restrictions and allow the trading of goods.
So I think it's safe to assume that the launch will be on March 3, 2025, at 10:00 (UTC) for unrestricted full trading.
Thank you for reading.
Alert: This is not financial advice, check Binance's official pages for more information and always do your own research.
