The Funding: Are crypto tokens trading at 90% discounts in secondary markets?
Crypto token secondary markets are experiencing widened discounts, though 90% discounts are token-specific rather than market-wide, driven by factors like weak demand and shifting investor preferences.Summary
Recent reports suggest significant discounts on crypto tokens in secondary markets, with some tokens trading at up to 90% below their initial value. However, sources indicate that 90% discounts are not representative of the entire market, but rather apply to specific tokens and structures. Discounts have widened due to a combination of factors, including weak market sentiment, reduced liquidity, concerns about token value accrual, and a growing investor preference for equity over locked tokens. Longer vesting periods are associated with deeper discounts, as buyers are hesitant to take on long-term risk. The market is also seeing a shift towards higher-quality equity secondaries, which are experiencing lower discounts and even premiums. Experts suggest that improvements in token structuring, exchange pricing, and overall market conditions are needed to tighten discounts and attract more investors.
(Source：The Block)