The Ontario Securities Commission is permitting TokenGX, an affiliate of TokenFunder, to promote secondary-market trading of its tokens by providing the firm regulatory relief for a short time. The trading will aid the tokenization startup to render liquidity for investors. TokenFunder helps other firms in raising funds through token sales.
The secondary trading will be initiated on FreedomX, a platform developed by TokenGX and will be limited to sellers and purchasers who are the residents of Ontario and are verified as investors through TokenGX’s KYC. The participants on the network would be able to create new orders. Furthermore, the trading will be executed by smart contracts after traders make the trade through an order book interface. The platform is open to retail, along with the accredited investors, but the trade for retail investors is limited to $2,500.
TokenGX and TokenFunder, both run on the Ethereum blockchain, facilitating transparency in trading transactions. Also, the investors will pay for the trades with “settlement balance tokens” rather than the traditional money. The tokens will be purchased and sold at the fixed price of one Canadian dollar. However, these FNDR tokens cannot be shared with wallets outside of TokenGX’s system.
