Secondary token markets SecondSwap on Thursday launched its mainnet on Ethereum with the purpose of offering a extra environment friendly marketplace for illiquid belongings by eliminating intermediaries and establishing truthful token worth within the open market.
SecondSwap makes use of a liquidity routing algorithm that optimizes commerce execution and minimizes worth slippage to make sure safe and scalable buying and selling experiences for patrons and sellers.
“By introducing a decentralized order book-style alternate, we’re bringing transparency to token secondary markets,” mentioned Kanny Lee, founding father of SecondSwap, in an e mail to CoinDesk.
“Our platform gives visibility into purchase and promote orders, leveraging worth discovery mechanisms reminiscent of market depth and liquidity profiling. By means of seamless pockets integration, we guarantee proof of management for sellers and proof of funds for patrons, enhancing safety and belief.”
Secondary markets for locked tokens discuss with platforms or mechanisms the place tokens which can be beneath some type of lock-up or vesting schedule will be traded earlier than they’re absolutely launched or unlocked.
These markets present a method for holders of locked tokens to achieve liquidity, which means they will convert their holdings into money or different belongings earlier than the tokens are absolutely unlocked — giving early liquidity to sellers and the possibility of gaining belongings at a reduction for patrons.
SecondSwap has launched a bid marketing campaign to facilitate worth discovery and improve liquidity in early weeks, permitting merchants to set their very own costs and help matching between patrons and sellers as soon as the purchase/promote circulate characteristic is enabled.
Merchants hyperlink their wallets, accessing an inventory of locked tokens that they will categorical an curiosity in shopping for by setting their most popular worth goal. Contributors shall be notified when stock is offered at prevailing costs, guaranteeing early adopters can have interaction with new alternatives as they emerge.
The platform plans to develop to the Solana community within the coming months, a feat Lee says may unlock over $500 million in quantity.
“Locked token liquidity represents billions of {dollars} of untapped worth. The affect of unlocking this liquidity can’t be understated. On Solana alone, even activating simply 10% of dormant liquidity, may inject over $500 million in actionable quantity,” Lee mentioned.
“It’s undoubtedly one of many drivers for partnering with Solana on the outset. When coupled with the affect that SecondSwap’s vesting mechanism can provide memecoins – to cut back circulating provide – the Solana partnership will proceed to flourish and profit the broader market.”
