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). Managing director of CFX Markets, Juan Hernandez, stated:
“The official opening of the CFX Markets platforms represents a landmark for the crowdfunding industry. We’ve always felt that in order for equity crowdfunding to reach its full potential, investors would need the option of liquidity. CFX will provide crowdfunding investors with the much-needed option of liquidity, and we’re thrilled to partner with some of the leading real estate crowdfunding platforms in the industry.”
Crowdfunding platforms that have already joined the CFX Network and have made their investment offerings available for resale include PeerRealty, American Homeowner Preservation, CrowdFranchise, and PropertyStake.
“I’m excited that CFX will allow PeerRealty to offer our investors the option of liquidity. There are a lot of real estate crowdfunding platforms in the market, but being able to give PeerRealty investors the ability to exit their positions if need be will make our investment offerings more appealing.”
American Homeowner Preservation CEO, Jorge Newbery, added:
“Liquidity will help open up equity crowdfunding to many new investors. With the explosive growth of real estate crowdfunding over the past several years, the launch of a secondary market marks a new phase in the maturation of the industry. We’re looking forward to being part of the CFX Network.”