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Leading cryptocurrency exchange Binance is getting ready to list SEI, the service token of Layer 1 Blockchain SEI Network, on August 15th. The price at which SEI token will trade during the listing has created a lot of curiosity, and decentralized exchange Aevo might have the answer.
SEI’s Pre-Listing Price Set at $0.26
Data obtained from Aevo’s pre-listing futures market suggests that SEI will be traded at $0.26 right after its listing on Binance. Aevo launched its pre-listing futures market with SEI contracts on August 9th. The market allows investors to speculate on the potential post-listing price of a cryptocurrency. The product related to SEI resembles IOU futures contracts offered by some cryptocurrency exchanges. Julian Koh, Co-founder and CEO of Aevo, said in an evaluation with CoinDesk, “Pre-launch futures allow the price to find itself through users being able to take both long and short positions.”
After its listing, SEI’s circulating supply will account for 1.8 billion SEI or 18% of the total supply of 10 billion, according to Binance. Therefore, the potential post-listing price of $0.26 implies that the altcoin will have a market value of $486 million and will be among the top 100 cryptocurrencies by market capitalization. According to data provided by crypto data platform CoinGecko, SEI is currently not traded on any cryptocurrency exchange.
Price Volatility Expected After Binance Listing
With the listing of the altcoin on Binance, the pre-listing futures will start using the index price as a reference, and investors will monitor the funding rate to keep the price at the same level as the spot market. In other words, pre-listing futures will become perpetual swaps after the Binance listing.
Funding rates are periodic payments made by long or short position holders indicating a rise or fall. In situations where the price in perpetual futures trades at a premium to the spot price, long position holders pay short position holders. Conversely, short position holders also pay long position holders to keep their positions open.
Considering the experimental nature of the product, Aevo has set strict position limits and upper bounds on open interest in these markets. When it comes to margining futures, the value is settled with the stablecoin USD Coin (USDC), which is pegged to the US dollar.
