In the April 5, 2026 edition of The Funding newsletter, Yogita Khatri examined claims of extreme discounts in crypto token secondary markets. Long-time investor Santiago Roel Santos (founder of Inversion) stated that the average discount on “the vast majority of crypto secondaries” has reached about 90%, compared to the usual 60–70% for locked tokens with standard vesting. He described the situation as “never been this bad.”
However, interviews with multiple secondary market participants reveal a more nuanced picture. While discounts have indeed widened in recent months, 90% discounts are largely token- and structure-specific rather than a broad market trend.
Overall, average discounts have increased from the 50–60% range seen in earlier cycles. Even during the 2024 bear market, discounts were significant but generally not at today’s extremes for most assets.
Several structural and market factors are contributing to the deeper discounts:
Equity now accounts for about 40% of total expressed interest on platforms like SecondLane and dominates larger deals (average equity opportunity size $10.8M vs. $5.4M for tokens).
Discounts are especially deep in weaker sectors such as gaming, where some assets trade at around 80% discounts to spot. Stronger pricing persists in areas with deeper institutional demand and clearer fundamentals.
A limited set of tokens still commands tighter discounts: those with clear value accrual, shorter lockups, strong ecosystems, or the ability to be hedged in liquid markets (e.g., via perpetual futures or puts).
Most sources expect discounts to tighten only if broader market conditions and structural issues improve. Key recommendations include:
Jan-Philip Grabs (co-founder of Areta) and others expressed cautious optimism for the second half of 2026, citing expected macro improvements and better performance from Bitcoin and other major assets. Platforms like Hyperliquid (HYPE token) are cited as positive examples of projects with clear product-market fit, revenue generation, and sustainable tokenomics that the market is rewarding.
While secondary market discounts have widened and extreme cases (70–90%+) do exist — particularly for long-vesting or low-fundamental tokens — they are not the market-wide norm. The broad average sits closer to 40–50%, with deeper discounts concentrated in the tail end of opportunities. The market is clearly differentiating between high-quality assets and those with structural weaknesses or excessive supply pressure.
This environment reflects a maturing but still challenged secondary market, where buyers are more selective and focused on fundamentals, liquidity, and shorter risk horizons.
