Tradability & secondary market

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.

Fundamentals of Virtual Share Tradability

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:

• Virtual shares can be transferred between wallets within the Ethereum ecosystem
• All ERC20-compatible wallets can send and receive virtual shares

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

Information for Startups

Benefits of the Secondary Market for Startups

The secondary market allows startups to offer liquidity to their investors without carrying out capital measures themselves.

Benefits for startups:

• Earlier liquidity for investors without an exit or IPO
• Increased attractiveness for new investors
• No operational overhead
• No trade control or price setting by the startup
• Strengthened investor relations

Trading takes place independently of the startup’s operational business.

Applying for the Secondary Market

Startups can apply for access to the secondary market directly via their account settings.

Process:

• Log in to the Tokenize.it startup account
• Open the account or company settings
• Apply for secondary market onboarding

We will automatically contact you to initiate the onboarding process.

Information for Investors

What Is the Secondary Market

The secondary market allows investors to buy or sell virtual shares at any time, provided that the shares are tradable.

This means:

• Earlier liquidity for startup investments
• Flexible portfolio adjustments
• Access to startups even after the initial funding round
• Continuous trading

Access to the Secondary Market

Access is provided via the personal Tokenize.it account.

Steps:

• Log in to the investor account
• Switch to the “Trade” tab
• Unlock trading access once via a short onboarding process

Once completed, trading is immediately possible, provided no restrictions apply.

Buying and Selling Shares

The following functions are available in the Trade section:

• Buy: view existing sell offers and acquire shares
• Sell: offer your own shares for sale
• My orders and transactions: overview of ongoing and completed trades

New buy or sell orders are created using the plus button.

Fees

Clear fees apply to trading:

• Two percent transaction fee per completed trade
• The fee is borne by the seller
• No setup fees
• No subscriptions
• No hidden costs

Fees are only charged when a trade is successfully completed.

Security and Settlement

The secondary market combines ease of use with regulatory security:

• On-chain settlement on the Ethereum blockchain
• Instant payment processing via SEPA Instant
• Regulatorily compliant framework for startup participations

Important Notes

Tokenize.it does not provide investment advice.

Tokenize.it acts as a tied agent pursuant to Section 3 (2) WpIG.

Brokerage services are provided under the liability of Concedus GmbH.