SecondSwap Launches Mainnet on Ethereum to Bring Transparency to Token Secondary Markets

Secondary token markets SecondSwap on Thursday launched its mainnet on Ethereum with the aim of providing a more efficient market for illiquid assets.

Secondary token market SecondSwap launched its mainnet on Ethereum on Thursday, aiming to create a more efficient market for illiquid assets.

The platform eliminates intermediaries and establishes fair token value in the open market. SecondSwap uses a liquidity routing algorithm to optimize trade execution and minimize price slippage. This ensures a secure and scalable trading experience for both buyers and sellers.

“We are introducing a decentralized order book-style exchange to bring transparency to token secondary markets,” said Kanny Lee, founder of SecondSwap, in an email to CoinDesk.

“Our platform provides visibility into buy and sell orders, using price discovery mechanisms like market depth and liquidity profiling. We integrate seamlessly with wallets to establish proof of control for sellers and proof of funds for buyers, enhancing security and trust.”

Secondary markets for locked tokens are platforms or mechanisms where tokens that are subject to some form of lock-up or vesting schedule can be traded before they are fully released or unlocked.

These markets provide a way for locked token holders to gain liquidity, allowing them to convert their holdings into cash or other assets before the tokens are fully unlocked — offering early liquidity to sellers and the potential for buyers to acquire assets at a discount.

To facilitate price discovery and enhance liquidity in the early weeks, SecondSwap has introduced a bid campaign. This allows traders to set their own prices and facilitate matching between buyers and sellers once the buy/sell flow feature is activated.

Traders can connect their wallets to the platform and access a list of locked tokens that they can express an interest in purchasing by setting their preferred price target. When inventory becomes available at the prevailing prices, participants will be notified, ensuring that early adopters can engage with new opportunities as they arise.

The platform aims to expand to the Solana network in the coming months, a move that Lee claims could unlock over $500 million in volume.

“The locked token liquidity represents billions of dollars of untapped value, and the impact of unlocking this liquidity cannot be overstated,” said Lee.

“On Solana alone, even activating just 10% of the dormant liquidity could inject over $500 million in actionable volume. It’s certainly one of the driving forces behind our early partnership with Solana. When you combine this with the impact that SecondSwap’s vesting mechanism can have on memecoins — reducing circulating supply — the Solana partnership will continue to grow and benefit the broader market.”