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.