Pre-launch token trading in the cryptocurrency market exhibits significantly higher volatility compared to post-launch trading, with some tokens experiencing up to 20 times more volatility before their token generation event (TGE).

Keyrock's report highlights the critical role of liquidity in stabilising markets, emphasising the importance of sufficient market depth for effective price discovery.

Despite the risk, pre-TGE trading remains popular among investors seeking early exposure to new crypto projects, driven by fear of missing out (FOMO) and the potential for higher returns.

While some pre-TGE investments have proven profitable, others have resulted in significant losses, showcasing the inherent risk associated with this trend in the crypto market.