Due Diligence

Due diligence refers to the comprehensive research and analysis an Investor should undertake before investing in any Channel Revenue Token (CRT) offering. This process is essential because CRTs are speculative investments and Investors may lose their entire investment.

Effective due diligence for CRT offerings involves several key areas of review. First, Investors should thoroughly read the Form C filing, which contains the offering terms, financial disclosures, risk factors, and the Creator's historical revenue data. This document is the primary source of verified information about any offering.

Second, Investors should evaluate the Creator's YouTube channel metrics, including subscriber count, view trends, content consistency, and audience engagement. Understanding the Creator's content niche and its long-term viability is important for assessing potential future revenue.

Third, Investors should carefully review the specific terms of the CRT offering, including the revenue percentage being shared, the revenue-share term (duration), and the total amount being raised. These terms directly affect the potential distributions an Investor may receive.

Fourth, Investors should assess the risk factors disclosed in the offering documents. These include Creator risk (the possibility that the Creator's channel performance could decline), platform risk, demonetization risk, and the general speculative nature of Creator Economy investments.

Finally, Investors should consider how a CRT investment fits within their broader portfolio and whether they are practicing appropriate diversification. No single CRT position should represent an outsized allocation of an Investor's total investments.

GigaStar Market provides educational resources to help Investors conduct due diligence, but ultimately each Investor is responsible for making informed investment decisions.