The Pre-IPO Exchange (PIPE)
Security tokens do not have liquidity on secondary markets at this stage, but adoption of the new asset class by major stock exchanges is predicted to bring greater liquidity due to blockchain-based frictionless transfer in a secure environment, decreasing intermediary costs and barriers to entry.
The PIPE is looking to invest in early stage technology companies and so it is suitable that it takes an innovative approach to fund raising by integrating the disruptive technology of blockchain.
Once secondary trading approval has been secured, the same distributed network can enable frictionless transfer of investor holdings, i.e. token balance, with other approved members of the PIPE ecosystem.
Investors looking to release value from the Fund can sell tokens or invest into subsequent token markets listed for R&D portfolio companies on The PIPE. The trading engine will match peer-to-peer transactions autonomously and all transactions will be recorded in the immutable ledger, including fully identified parties and minimal transaction fees.