New assets require a new marketplace
New assets continue to emerge in crypto.
Emerging Asset Types
In 2024, with the Bitcoin halving and the approval of spot ETFs for BTC and ETF by the U.S. SEC, the cryptocurrency industry has ushered in another round of rapid growth. In this process, we have identified some trends.
Unlike traditional crypto assets (such as governance tokens, MEME, NFT, etc.), some illiquid assets have begun to be traded on the blockchain, such as points from crypto project parties, tokens before Pre-TGE, RWA assets, and interest swaps of crypto interest-bearing assets.
The characteristics of these assets are low liquidity, but there is a strong demand for trading. We collectively refer to the trading of these assets as the trading of new assets to distinguish it from traditional crypto assets.
We can further divide these new assets into two categories:
- The first is the trading demand of assets that exist in the crypto market itself and have not been effectively met before 2024
- the second is the trading demand of assets that already exist in the traditional financial market but have not been met in the crypto market.
For the first category of new assets, before the emergence of an effective platform, users completed the trading needs through over-the-counter transactions.
Starting in 2024, some decentralized platforms have emerged to meet these needs, such as the trading of points and the trading of tokens before Pre-TGE. The annual transaction volume of the entire market is around $500M, and it is growing at a rate of more than 40% per year.
For the second category of new assets, its potential market size is much larger than the first category of assets. Taking the interest swap of crypto interest-bearing assets as an example, in the traditional financial over-the-counter derivatives market, the swap of asset benefits is called Interest Rate Swap. Interest Rate Swap accounted for 51% of the traditional financial over-the-counter derivatives market in 2023 (source).
Challenges and Opportunities
At present, a large number of interest-bearing assets are emerging in the crypto market. At the same time, as traditional financial institutions further deploy in the crypto market, we estimate that the market size of the crypto asset benefit swap will exceed 1 trillion, let alone the potential transaction volume of RWA in the crypto market, which also exceeds 1 trillion.
Our conclusion is that these new assets are continuing to emerge, and the current crypto market does not have products that can effectively undertake these trading needs.
Nowadays, sellers and buyers of new assets are facing the following issues:
- Due to the lack of a trading market, the prices of new assets cannot be effectively discovered. For example, holders of points, Pre-TGE tokens, and other assets cannot understand the value of the new assets they currently hold
- Some holders of new assets want to lock in the value of the assets before some major events, but there is no widely recognized trading market. The traditional OTC method faces trust risks
- Some investors want to buy early-stage assets or new assets, but there is a lack of purchase channels.
Introducing Tomarket
We hope to solve these pain points for users. Hence, we decided to create Tomarket.
Tomarket is a decentralized new assets marketplace. From a product perspective, Tomarket uses the method of both parties to mortgage to ensure the normal delivery of the transaction.
At the same time, similar to traditional futures, the rights of the buyer and the obligations of the seller can be traded in the market. If the seller ultimately does not want to make a real token delivery, he can hedge and close the position before the delivery date by buying the opposite position, which can greatly improve the liquidity of the entire market, thereby more reliably discovering the price of new assets.
More product details will be announced as our products are gradually released.
Tomarket hopes to provide real value to the crypto market and meet users’ real needs for new asset trading. At the same time, we are also committed to making Tomarket a community-driven trading market.
Most of the project tokens will be distributed as incentives to participants and contributors of the project. After completing effective community construction, Tomarket will be fully governed in a decentralized manner.
The entire crypto industry is at an important transition period of accepting more investors from the traditional market. A large number of main financial products of the traditional financial market, such as RWA assets and IRD products, will emerge in large numbers in the crypto industry. The current trends also confirm this point.
We hope that more users, investors, crypto enthusiasts who are willing to grasp this trend will join the Tomarket community and promote new asset trading together, enabling the crypto industry to bring value to a wider range of users.
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