# kaal:claim:4685567-014

**Claim.** Impact 1.0 impact markets fail on the demand side: they have more sellers than buyers, and many potential buyers would have funded those projects anyway, which removes the need for a secondary market and significantly reduces resale value.

**Type.** failure  **Support.** argued

**Holds when.**

- Impact 1.0 secondary markets for social impact credits

**Source quote.**

> Impact 1.0 markets typically have more sellers than buyers and many potential buyers would have done those 47 projects anyway thus removing the need for a secondary market. This imbalance of high supply and low demand significantly reduces the "resale" value

**From.** Wulf A. Kaal, *Impact Investing Innovation - From Impact 1.0 to 3.0* (2024), Social Impact Credits, page 21

**Cite as.** Wulf A. Kaal, Impact Investing Innovation - From Impact 1.0 to 3.0 (2024). SSRN: https://ssrn.com/abstract=4685567

**Verify.** sha256 of source PDF `87fb1be89d2661967ed2b0b673fe26448ded3bc3119b122177a4fc13ae5c085c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20Impact%20Investing%20Innovation%20-%20From%20Impact%201.0%20to%203.0.pdf

**Failure mode.** Demand Side Collapse in Impact Markets  (family: liquidity-and-market-structure-failure)

**Topics.** tokenomics, economics

**Keywords.** supply-demand-imbalance, resale-value, secondary-market, impact-1-0

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