Crypto has made significant strides in recent years, with world-class launch pads and some of the most liquid spot markets globally. New tokens can be minted, listed, and traded almost instantly. However, despite this progress, a significant gap remains in the token lifecycle. Billions of locked and vested tokens are traded off-chain in opaque over-the-counter (OTC) stores, distorting prices and penalizing retail investors.
The Missing “Mid-Life Market” for Tokens
This gap in the token lifecycle undermines the sustainability and adoption of tokenized real-world assets (RWAs). Without structured secondary liquidity, price discovery disruptions occur, volatility increases, and tokenized assets struggle to scale beyond demos. A mid-life market for tokens, similar to Nasdaq Private Markets, would provide a much-needed solution. This would enable fair access, visible prices, and orderly circulation throughout a token’s lifecycle.
Consequences of the Gap
The lack of a mid-life market has significant consequences. Opaque OTC deals and off-chain price discovery thrive, fueling price discrepancies, influencing retail expectations, and distorting the sustainability of token economies. Large owners negotiate in back channels, and prices are set in private chats. This volatility later spills over into public markets, with retailers often paying the price for the gap.
Lessons from Traditional Finance
Traditional finance solved a similar problem long ago. Public markets require regulatory filings disclosing fundraising terms and discounted allocations to insiders and institutions. Platforms like Nasdaq Private Markets provide structured solutions for private companies to manage secondary trading and liquidity of their shares prior to a public offering. The lesson is clear: healthy markets need structured, transparent “mid-life markets” that keep liquidity orderly and traceable throughout the token’s life cycle.
The Need for a Crypto “Mid-Life Market”
A true mid-life market for tokens is not about restoring traditional finance bureaucracy on-chain. It’s about creating a venue that reflects how programmable assets actually work. Issuers should know what is being traded and according to which rules. Vesting and lockup conditions should remain intact by design. Pricing should be visible, and compliance should be enforced through smart contracts rather than paper.
Benefits of a Crypto “Mid-Life Market”
A mid-life market allows holders to purchase discounted locked tokens through transparent, issuer-aware rails, hold them for the agreed period, and even re-offer them if conditions change. Each time these tokens are traded again, the value moves through contracts on the chain rather than disappearing into phone calls and PDFs. This provides fair access, visible prices, and orderly circulation throughout the token’s lifecycle.
Conclusion
If crypto doesn’t build this missing layer, OTC channels will remain the default. Volatility will continue to be fueled by information shocks rather than fundamentals. Information will remain asymmetrical, and RWA adoption will slow. Institutions will be reluctant to expand their exposure beyond a handful of blue chips. Regulators will be forced to mask shadow activity with blunt tools.
A Nasdaq Private Market-style infrastructure designed for programmable assets gives tokens a predictable medium life, fairer markets, and true tokenization. It turns blocked allocations into visible inventory rather than hidden risks. It fills the gap between sealed and liquid. This missing layer will determine whether Web3 liquidity becomes sustainable, accessible, and trusted globally.
Read the full article at https://crypto.news/cryptos-crisis-tokens-nasdaq-style-secondary-markets/
Kanny Lee is CEO and co-founder of SecondSwap, the decentralized marketplace for locked tokens and RWAs. Having previously worked at dtcpay, OSL Group, EY, Deloitte, and others, his ACAMS/GCFA credentials ensure unrivaled expertise in compliance and market design.
