|CFX Markets, a secondary market for crowdfunding assets, announced on Wednesday its online market is now open to the public.|
According to the company, the secondary market effectively acts as a stock exchange for crowdfunding investments, allowing investors to buy and sell shares from other participants in the market (subject to SEC resale restrictions)
Juan Hernandez has a quote in the Chicago Tribune about the new platform...
|“Our goal is basically to make it as easy to buy somebody’s private investments as it is to buy and sell shares of Microsoft stock...There’s this tremendous number of new platforms out there that have high-quality investment opportunities that people can now participate in, but what happens after you’ve invested in one of these properties and it's one to two years later and you need to cash out on your position for whatever reason?”|
FinanceMagnates.com has a good explantion of how the platform will work...
|Commenting on the process, Daniel Kelly, Head of Operations at CFX Markets, explained to Finance Magnates that customers create an account with CFX Markets. Upon being authenticated and verified with the platform’s partners, eligible investment assets are connected to the users CFX Markets account and can be listed on the exchange.
Similar to other exchanges, CFX Markets will provide historical pricing of assets that have been listed for reference for ongoing deals. According to Kelly, assets are able to sell assets “subject to SEC resale restrictions” which he stated “generally require a 1-year waiting period”.
Currently, CFX Markets is only being integrated with US based crowdfunding platforms. However, Kelly stated that international investors are welcome to open accounts and purchase shares on the platform.