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Most token projects launch into a market structure defined by low circulating supply and high fully diluted valuation. A small float trades publicly, while a large portion of supply sits in locked private allocations with a significantly lower cost basis. This creates a structural imbalance. Early investors hold large amounts of future supply at low prices, while the spot market prices the token based on a much smaller float. As vesting unlocks occur, this imbalance often results in concentrated sell pressure and sharp volatility, even when underlying demand for the token exists. Historically, low-float, high-FDV launches frequently see post-launch drawdowns of 60–90% as locked supply begins to unlock. 1st is designed to address this problem directly.

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Replacing low cost basis with higher cost basis

The core mechanism through which 1st improves market structure is cost basis replacement. When an early investor sells mirror tokens during vesting, they are transferring future unlocks to a new buyer before the tokens enter circulation. That buyer accepts vesting in exchange for a discount, but typically acquires the tokens at a higher, market-driven cost basis than the original private round. As a result, future supply moves from holders with very low cost bases to holders with higher cost bases before unlocks occur.

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Simple example

  • An early investor holds tokens at a $0.10 cost basis
  • The token trades at $1.00 on the spot market
  • Instead of selling at unlock, the investor sells mirror tokens at a $0.60 effective price
  • A new buyer now holds the future unlocks at a $0.60 cost basis
When the tokens eventually unlock, the unlocked supply is held by participants with significantly higher entry prices, reducing immediate sell pressure and improving spot market stability.

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Distribution to a broader market

1st and Spring together serve a large base of more than 220,000 investors who actively participate in private-market trading and investing. 1st is the only place where the public can access early-stage token allocations in a liquid, permissioned market. Before 1st, participation in this asset class required buying entire SAFTs or SAFEs through OTC deals, typically involving minimum commitments ranging from $100,000 to several million dollars per allocation. By fractionalizing and standardizing access to locked allocations, 1st opens private-market exposure to a much broader audience. This significantly expands demand for future supply and allows early-stage allocations to be distributed across a wider, more diverse group of participants.

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Revenue-generating markets that are approved and transparent

Trading on 1st is fully approved and sanctioned by projects. All listings require explicit project approval, verified allocations, and fixed vesting terms. There are no opaque OTC deals, no off-platform transfers, and no synthetic claims. Ownership of locked tokens is visible on chain, and trades occur in a transparent, auditable market. Projects earn fees on every trade that occurs on their markets, including both buys and sells. This allows projects to generate ongoing revenue from private-market trading activity and directly participate in the speculation around their early-stage allocations. Instead of value being captured exclusively by early investors and secondary OTC intermediaries, projects earn revenue as locked allocations change hands over time. This turns private-market trading into a direct and recurring revenue stream for the project itself.