CoinDesk
Crypto markets are moving beyond creating new digital assets and toward pricing things that already exist, argues Annabelle Huang, co-founder and CEO of Altius Labs. Prediction markets, oil and gold perpetuals on Hyperliquid, and pre-IPO perpetuals are examples of products that create continuously tradable markets around events, commodities and private firms.
Why it matters
These markets treat price discovery as a product in its own right. A trader in a pre-IPO perpetual may have no ownership stake or shareholder rights, but the contract can provide a real-time signal of how participants value a private company. The same principle can apply to elections, inflation reports and other developments that attract public attention.
Blockchain-based markets can operate 24/7, allowing prices to respond as information emerges rather than waiting for conventional trading hours or periodic private-company valuations. They can also broaden access beyond the accredited investors and established relationships often required to trade private equity. Wider participation could improve the information markets aggregate, though exposure remains distinct from ownership.
Market impact
The shift places new demands on blockchain networks. Throughput, latency, liquidity depth and reliability all shape whether participants can trade efficiently and whether prices provide useful signals. Huang argues that bottlenecks can weaken those signals and limit participation.
For crypto, the opportunity is to build infrastructure for continuously updated markets, not just to launch more tokens. High-frequency trading, sophisticated risk management and deep pools of capital remain essential to that vision. The quality of that infrastructure will help determine whether these markets can reliably price a wider range of real-world interests.
Frequently asked questions
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What kinds of markets are expanding in crypto?
Examples include prediction markets, oil and gold perpetuals on Hyperliquid, and perpetual contracts linked to pre-IPO companies.
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How can a pre-IPO perpetual provide information without granting ownership?
It gives traders exposure to a market price that reflects perceived company value. It does not provide shares, shareholder rights or a claim on future cash flows.
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What is different about blockchain-based price discovery?
Blockchain markets can operate 24/7 and respond to information as it emerges, rather than waiting for conventional trading hours or periodic valuation events.
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How could broader access affect these markets?
Participation beyond accredited investors and established private-equity networks could allow more people to contribute views to the market's information signal.
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What infrastructure do continuous markets require?
They depend on throughput, low latency, liquidity depth and reliability, as well as support for efficient trading and sophisticated risk management.
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