On February 28th, COINOTAG reported that **RedStone (RED)** commenced trading on the Binance pre-market at an opening price of **$0.4**, leading to the activation of a first-day upward circuit breaker mechanism. This innovative mechanism introduced by Binance aims to promote market stability and prevent extreme volatility within the first 72 hours of trading. During this period, the trading price cannot exceed 200% of the opening price.
For instance, holders of RED tokens are subject to a maximum limit of **5,000 RED** prior to its official listing. The trading limits structured for RED are as follows: from **10:00 UTC on February 28** to **09:59 UTC on March 1**, the price is capped at 200% of the opening price; this is followed by a 300% cap from **10:00 UTC on March 1** to **09:59 UTC on March 2**, and finally a **400% cap** from **10:00 UTC on March 2** until the end of the testing period on **March 3**. After this date, no price limits will apply, marking the resumption of standard trading practices.
It is important to note that this price limit mechanism is currently in a trial phase exclusive to the RED token sale, with no confirmation yet on its future implications for pre-market trading habitats.