HTX Research's Latest Research Report Interpreting Pre-market Trading Ecosystem: How a Hundred Billion Dollar Market Is Reshaping the Web3 Asset Starting Line
Source: HTX Research

Recently, HTX Research, the exclusive research department under Huobi HTX, released a new research report titled "Pre-Trading Asset Trading Ecosystem: Mechanism Evolution Behind a Billion-Dollar Scale, Market Structure, and Future Trends," systematically studying the formation background, asset structure, typical patterns, and profound impact on project issuance and exchange systems of the pre-trading ecosystem in the crypto market.
The report focuses on a trend that is rapidly emerging: in a tightening financing environment and with a lengthening token issuance cycle, pre-TGE trading activity is shifting from scattered attempts to evolve into a "1.5-level market" connecting the primary and secondary markets, gradually becoming an indispensable independent market layer in the crypto industry.
From the "Pre-IPO Vacuum Period" to the Pre-Trading Market: A New Structure Between Primary and Secondary
HTX Research points out that the rise of the pre-trading ecosystem is not accidental. As primary financing contracts and the project issuance cycle passively lengthens, project teams begin to maintain community activity through points, airdrop expectations, testing qualifications, and users continue to invest time and funds before the TGE. In this process, the originally non-negotiable "early contributions" and "future expectations" gradually acquire conditions for securitization.
At the same time, the token issuance threshold has lowered, and the number of projects has surged, making attention a scarce resource. The pre-trading mechanism revolving around attention, expectations, and future equity began to grow naturally, jointly forming an intermediary market that originally only existed within VCs and exchanges. This is an emerging 1.5-level market (Pre-Market), whose role is no longer just a speculative tool but a key structure reshaping the project launch method and early liquidity.
Three Asset Structures Forming the Pre-Trading Ecosystem
Starting from the "Future Value Anchoring Method," HTX Research categorizes pre-trading assets into three structural types:
The first type revolves around the future token value, with its trading patterns mainly including pre-OTC, pre-spot, and pre-perpetual contract trading. These assets are most directly connected to the future spot price and play the most concentrated price discovery function in the pre-trading phase.
The second type revolves around the points system, namely, user behavior points and their financial derivatives, which have gradually formed a standardized points OTC market. Points in airdrop economics carry user contributions and incentive expectations. Through a trading and revenue-splitting mechanism, they are priced into the market in advance.
The third type revolves around future convertible rights, appearing in the form of NFTs, Qualification Certificates, or BuildKey, transforming whitelist access, early access, token allocations, and other non-standard rights into tradable assets.
These three structures together cover the complete chain from "user contribution - market expectation - rights confirmation - final delivery," making pre-market trading no longer a standalone tool but a multi-tier pre-trading system.
Exploring Practices of Huobi HTX Pre-Market Perpetual Contracts
With the expansion of market demand and ecosystem maturity, pre-market trading is evolving from OTC and spot forms to derivative structures. Pre-market perpetual contracts, as an innovative derivative design, allow users to engage in leveraged trading around the future spot price of an asset before its official listing, further advancing price discovery. Currently, pre-market perpetual contracts have become one of the most traded pre-market trading modalities.
In this direction, Huobi HTX was the first to launch WLFI (World Liberty Financial) pre-market perpetual contract trading before the official listing of the highly anticipated project WLFI this year, providing users with tools for early participation in price speculation and risk management before the TGE. This practice also reflects the trend pointed out in the research report: the role of exchanges is shifting from the "listing node" to the "pre-issuance stage," and pre-market trading is becoming an essential part of the exchange's product ecosystem.
Scaling Potential and Structural Challenges of the Pre-Market Market
Pre-market trading has established a clear scale foundation, with leading projects often generating demand in the hundreds of millions of dollars during the pre-market phase. The cumulative pre-market trading volume of projects like WLFI and Monad can even exceed one billion dollars, making pre-market trading a billion-dollar market with further expansion potential.
However, at the same time, the pre-market market also faces clear structural risks: naturally thin liquidity, prices easily manipulated by large funds, high dependency on the project team for delivery, long-term asymmetry of information, and a lack of unified standards in rules, execution, and risk allocation across different asset forms. These issues determine that the further expansion of the pre-market market depends on whether it can transition from an "opportunistic market" to a more institutionalized and co-governed structure.
Conclusion
HTX Research believes that pre-market trading is not a short-term gimmick but a structural trend driven by changes in the funding environment, the evolution of user participation methods, and the extension of trading platform products. It is reshaping the project's issuance path, the exchange's listing logic, and the way users participate in early markets.
During this process, pre-market trading is transitioning from the "pre-issuance gray area" to gradually becoming a key foundational layer connecting the primary and secondary markets. Its ultimate form may become a long-standing presence in the crypto market, continuously institutionalized as a core market structure.
About HTX Research
HTX Research is the dedicated research department under Huobi HTX, responsible for in-depth analysis of a wide range of areas such as cryptocurrency, blockchain technology, and emerging market trends. It produces comprehensive reports, offering professional assessments. HTX Research is committed to providing data-driven insights and strategic foresight, playing a crucial role in shaping industry perspectives and supporting informed decision-making in the digital asset space. With rigorous research methodologies and cutting-edge data analysis, HTX Research consistently stays at the forefront of innovation, leading industry thought and fostering a deep understanding of the evolving market dynamics.
This article is contributed content and does not represent the views of BlockBeats.
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The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
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These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.

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