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.
Understanding Liquidity
Liquidity refers to the ease with which an asset can be bought or sold without significantly affecting its price. In the context of Channel Revenue Tokens (CRTs) on GigaStar's platform, liquidity is an important consideration that Investors must understand before making an investment.
CRTs purchased in primary offerings on GigaStar Market are subject to a mandatory 12-month holding period as required by SEC Regulation Crowdfunding. During this period, Investors cannot sell their CRTs, making the investment completely illiquid. This holding period is a regulatory requirement and cannot be waived.
After the 12-month holding period expires, CRTs may become eligible for trading on the GigaStar Secondary Market, an Alternative Trading System (ATS) operated by GigaStar Securities. This marketplace, launching in March 2026, is designed to provide a venue where Investors can list their CRTs for sale and where buyers can purchase previously issued tokens. However, the existence of this marketplace does not assure liquidity.
The actual liquidity of any specific CRT depends on several factors, including the number of active buyers and sellers, the perceived value of the underlying Creator's revenue stream, overall market conditions, and trading volume. There may be times when an Investor wishes to sell their CRTs but cannot find a buyer at an acceptable price, or at any price. Similarly, Investors looking to buy specific CRTs may find limited availability.
Illiquidity is one of the key risk factors associated with CRT investing. Unlike publicly traded stocks on major exchanges, CRTs are niche securities with a smaller pool of potential buyers and sellers. Investors should plan to hold their CRTs for an extended period and should not invest funds they may need to access quickly. The speculative and illiquid nature of CRTs makes them unsuitable as a primary or short-term investment.
Key Points to Remember
- Liquidity 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
Alternative Trading System
An Alternative Trading System (ATS) is an SEC-registered trading venue. GigaStar Securities LLC, dba GigaStar Trading, will operate a digital Alternative Trading System (ATS) for secondary Channel Revenue Token (CRT) trading, launching in 2026.
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 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.
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.
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.
Risk Factors
Risk factors are the specific risks associated with investing in CRTs, including Creator performance risk, platform risk, illiquidity, and the potential for total loss of investment.
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.
Trading Volume
The number of CRTs traded on the GigaStar Secondary Market during a given period. Higher volume generally indicates greater market activity and potentially better liquidity.
Frequently Asked Questions
What is the GigaStar secondary market?
The GigaStar secondary market platform, called GigaStar Trading, is an SEC-registered digital Alternative Trading System (ATS) that allows eligible investors to buy and sell previously issued Channel Revenue Tokens (CRTs) with other investors after the initial offering period and any applicable restricted period, subject to securities regulations and platform rules. (e.g., Reg CF = 12-month restricted holding period). This secondary market platform enables peer-to-peer trading of existing CRTs. Note that Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Securities purchased in GigaStar Market must be held 12 months before trading in the secondary market. There is no guarantee of an active or liquid secondary market and investments are subject to market risk and will fluctuate in value. Past performance is not a guarantee of future results.
How is the secondary market different from GigaStar Market?
GigaStar Market (Primary Market) is an SEC-registered Funding Portal and member of FINRA that offers securities under a Regulation Crowdfunding (Reg CF) platform. This is the primary marketplace where Channel Revenue Tokens (CRTs) are first issued and sold directly to investors to fund a Creator. GigaStar Trading (Secondary Market) is an SEC-registered broker-dealer (BD) operating a digital Alternative Trading System (ATS) for the trading of Digital Asset Securities. This is a secondary market trading venue separate from the primary market, where eligible investors may buy and sell CRTs with one another. Primary offerings raise capital for Creators. Secondary trading allows existing investors to trade CRTs, transferring ownership, subject to market availability. NOTE: Investment offerings are speculative, illiquid, and involve a high degree of risk, including the risk of loss of your entire investment. Securities purchased in GigaStar Market must be held 12 months before trading in the secondary market. There is no guarantee of an active or liquid secondary market and investments are subject to market risk and will fluctuate in value. Past performance is not a guarantee of future results.
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.