Holding Period
The mandatory 12-month period after purchasing CRTs during which they cannot be resold on the Secondary Market, as required by SEC regulations.
Understanding Holding Period
The holding period is the SEC-mandated 12-month restriction during which Channel Revenue Tokens (CRTs) purchased in a primary offering on GigaStar Market cannot be resold or transferred on the GigaStar Secondary Market. This requirement applies to all securities issued under Regulation Crowdfunding (Reg CF).
The 12-month holding period begins on the date the Investor's CRT purchase is completed and the offering closes. During this time, the Investor retains full ownership of their CRTs and continues to receive Monthly distributions from the Creator's YouTube revenue, but they cannot list or sell their tokens on the Secondary Market.
This restriction exists to prevent immediate speculative trading of newly issued securities and to maintain the integrity of the crowdfunding market. The SEC implemented this rule as part of the broader Reg CF framework to protect both Investors and issuers.
There are limited exceptions to the holding period. CRTs may be transferred before the 12-month period expires in certain circumstances, including transfers to the issuer, to an accredited Investor, to a family member, or as part of an estate transfer. However, general resale on the Secondary Market is not permitted until the holding period expires.
Once the 12-month holding period concludes, Investors become eligible to list their CRTs for sale on the GigaStar Secondary Market, operated by GigaStar Securities. Listing CRTs for sale does not guarantee a buyer will be found, as secondary trading is subject to market conditions, available liquidity, and other factors.
The GigaStar Portfolio dashboard displays the holding period status for each CRT position, allowing Investors to track when their tokens become eligible for secondary trading.
Key Points to Remember
- Holding Period is regulated by the SEC under Regulation Crowdfunding
- All investments carry risk — past performance doesn't guarantee future results
- Review all offering documents carefully before investing
Related Terms
Channel Revenue Token (CRT)
A digital asset that represents a percentage of a YouTube channel’s future revenue. A CRT becomes tradable in the secondary market after a 12-month holding period from its initial purchase.
GigaStar Portfolio
The portfolio dashboard on GigaStar's platform showing an Investor's CRT holdings, Monthly distribution history, and account activity.
GigaStar Secondary Market
GigaStar Trading is GigaStar's upcoming SEC-registered Alternative Trading System (ATS), where CRT holders may buy and sell their positions, launching in 2026.
GigaStar Securities
GigaStar Securities LLC (dba GigaStar Trading), is an SEC-registered broker-dealer and FINRA/SIPC member that operates a secondary market Digital Alternative Trading System (ATS) for the trading of Creator securities (CRTs).
Illiquidity
The condition of not being able to easily sell CRTs. During the mandatory 12-month holding period, CRTs are illiquid. Even after, liquidity on the Secondary Market is not guaranteed.
Liquidity
Liquidity is the ability to buy or sell CRTs. CRTs are illiquid during the 12-month holding period. GigaStar Trading may provide liquidity, but does not assure it.
SEC Regulation CF
SEC Regulation Crowdfunding (Regulation CF) is the federal securities framework that allows companies like GigaStar to offer CRTs to both accredited and non-accredited Investors, up to $5M annually.
Secondary Trading
Secondary trading is the buying and selling of Channel Revenue Tokens (CRTs) on the GigaStar Secondary Market after the mandatory 12-month holding period has elapsed.
Frequently Asked Questions
What assets can be traded?
Eligible Channel Revenue Tokens (CRTs) that were issued in primary offerings, have satisfied applicable holding requirements (12-month holding period from initial purchase) and meet platform eligibility standards can be traded on the GigaStar Trading platform.
Can anyone invest in CRTs?
Investors aged 18 and older can invest in CRTs through GigaStar Market. Under Regulation Crowdfunding (Reg CF), non-accredited Investors have annual investment limits based on their income and net worth. All Investors must complete identity verification (KYC) as part of the account creation process before making any investment.
What happens if a Creator stops making videos?
If a Creator significantly reduces or stops content production, their YouTube revenue would likely decline, which directly reduces or eliminates your distributions. This is one of the key risk factors of CRT investing—your distributions depend on ongoing Creator activity and YouTube revenue generation. While existing videos may continue to earn some revenue, new content is typically the primary driver of channel performance.