What is the position of Pre-IPOs in the capital chain? Taking Gate's digitalization mechanism as an example

Which two market segments does it lie between

If you break down a company’s process from growth to going public, the first half is usually private fundraising and valuation accumulation, and the second half is price discovery in the public market. Pre-IPOs are exactly between these two: they focus on the change in a company’s value before entering the public market, not on secondary market trading after listing. Gate’s official page positions Pre-IPOs as a high-quality equity subscription platform for global investors, emphasizing that it serves the “pre-IPO” opportunity window.

Why does this intermediate layer exist

The reason for the emergence of this mechanism is straightforward: many companies, before officially going public, have completed multiple rounds of financing and reached high valuations, but ordinary users find it difficult to participate through traditional channels. When Gate opened the reservation portal on April 9, it clearly stated that the goal of this mechanism is to expand participation channels for public offerings and lower barriers related to geography, identity, and capital. The platform also explained that users can directly participate in subscriptions using stablecoins within the platform, without complex procedures.

What Gate Pre-IPOs has done

Gate has turned this intermediate layer into a platformized process. Users first visit the Pre-IPOs page, then select projects and submit subscriptions; both Web and App provide corresponding operation paths. The official help page shows that the participation entry is placed within Gate’s Earn / Launch / Pre-IPOs sections, indicating it is not an experimental feature outside the platform system but integrated into the standard product framework.

More importantly, Gate does not only provide a “sign-up portal” but also designs the post-subscription handling process. The official description of the first project states that after subscription completion, there will be allocation and uniform distribution, with asset tokens sent to spot accounts and entering subsequent trading phases with 100% unlock. In other words, this mechanism is not just about “subscription” but connects “subscription—distribution—trading” into a complete chain.

Why it changes the price discovery process

The most notable aspect of Pre-IPOs is not “whether you can buy early,” but “where the price begins to form.” In traditional markets, the official price usually only appears after listing; but in Gate’s mechanism, after asset tokens are distributed, they enter a pre-market trading phase where prices are determined by supply and demand, supporting 24/7 trading. The initial SPCX announcement also clearly provided the pre-market trading and flash swap schedule, indicating the platform has moved the price discovery process before listing forward.

This forward shift results in users facing not just a subscription action but a longer price curve: first the subscription pricing, then the allocation results, followed by market trading. Gate’s explanations and case articles emphasize that the funds during the subscription period, the final allocation quantity, and subsequent trading performance are interconnected and continuous.

Why this structure attracts the market

For the platform, the significance of Pre-IPOs is transforming a previously institutional-oriented market entry point into a more accessible digital interface; for users, its appeal lies in being able to engage earlier with the value changes before a company’s listing; for the market, its change is that price discovery and liquidity start to appear earlier. Gate’s public materials repeatedly emphasize “transparent allocation rules,” “institutional-level project screening,” and “early value tracking,” all of which indicate that this product aims to create a new capital flow interface.

But it still is not the stock market

This point must be clarified separately. Gate’s description of the first project explicitly states that the asset tokens are structured as Mirror Notes, which do not represent actual stocks or shares, nor do they establish legal relationships between investors and the target company. At the same time, the official risk warning points out that the target companies are not yet listed, listing times are uncertain, pre-market trading may have price volatility and liquidity issues, borrowed funds are not supported for participation, and institutional accounts and sub-accounts are ineligible.

Summary

Pre-IPOs can be understood as an intermediate layer in the capital market: it transforms the “pre-listing” phase from a relatively closed financing segment into a digital entry point that can be subscribed to, distributed, and traded. Gate Pre-IPOs is a platformized version of this logic; it is not just a simple new feature but integrates the participation method, price formation, and subsequent handling before listing into a standardized process.