Crypto investors are reportedly finding loopholes and backdoor deals with market-making firms to cash in on locked tokens. These tokens are typically supposed to remain off the market due to vesting schedules, but investors are using methods such as over-the-counter (OTC) trades and secondary market strategies to sidestep restrictions. Platforms like Wintermute, Flowdesk, and Caladan have been utilized by venture capitalists and early backers to move their locked assets. Some of the methods being used include Safe Agreements for Future Tokens (SAFTs) and forward contracts. This secondary market for locked tokens has seen significant growth since mid-2023, with potential for further innovation and expansion. However, these trading activities are causing concerns among token issuers as some trades are being done without approval and oversight. Despite this, proponents of this secondary market argue that it is about risk management, not violating agreements. The crypto market has been volatile, with Bitcoin and Ethereum experiencing fluctuations in prices. Additionally, leveraged crypto ETFs linked to Strategy saw significant drops in value.



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