The Tokenize.it secondary market enables the trading of virtual shares in startups. It is open 24/7 and provides liquidity in an asset class that has traditionally been highly illiquid.
Virtual shares are generally tradable within the Ethereum ecosystem. Tokenize.it provides a centralized, regulatorily compliant secondary market where virtual shares can be traded, provided that no trading restrictions set by the startup apply.
Virtual shares are ERC20-compatible tokens.
Note: Startups and investors who have a Tokenize.it account do not require an external wallet to trade or otherwise manage their tokens.
In general:
Possible trading restrictions in the smart contract:
Allowlist
Defines which Ethereum addresses are permitted to send or receive virtual shares
Lockup Period
Defines a period of time that must expire before virtual shares can be traded
The secondary market allows startups to offer liquidity to their investors without carrying out capital measures themselves.
Benefits for startups: