The securities offered by businesses pitching through CryptoLaunch are illiquid.
Securities purchased in a crowdfunding transaction generally cannot be resold for a period of one year, unless the securities are transferred:
- to the issuer of the securities;
- to an “accredited investor”;
- as part of an offering registered with the Commission; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.
Liquidity is the ease in which you can sell your shares after you have purchased them. Buying shares in businesses pitching through CryptoLaunch cannot be sold easily until (if) the issuer has successfully issued tokens in a Security Token Offering.