Secondary Market
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When you invest in one of our funds, such as Crypto100, you receive a specific token in return, for example, C100. This process tokenizes your share, offering flexibility and enhancing the security of your investment. Because these tokens are traded on exchanges in real-time, this mechanism serves as the decentralized finance (DeFi) equivalent of an Exchange-Traded Fund (ETF) in traditional finance (TradFi).
Your token can be traded on both decentralized exchanges (DEXs) like Uniswap and centralized exchanges (CEXs). This dual availability not only ensures the security of your investment by providing diverse platforms for trade but also maintains accessibility even if our platform encounters issues.
Your token can be traded on decentralized exchanges (DEX), like Uniswap. This capability ensures the security of your investment by allowing you to trade your shares on alternative markets, even in the unlikely event our platform becomes inaccessible.
We are actively working to broaden the liquidity and market exposure of our tokens by:
Adding liquidity to more DEXs across different chains.
Listings on centralized exchanges (CEXs) like Binance, Kraken, OKX, and KuCoin.
These steps are aimed at enhancing liquidity and providing more avenues for our investors to trade their tokens shares.
EarlyVentures conducts market making and arbitrage activities to ensure that the prices of the shares on Uniswap align with those on our platform. This strategy is vital for maintaining price stability and uniformity across trading platforms, mirroring the liquidity mechanisms seen in ETF markets.
Direct Purchase on EarlyVentures
New shares are minted when buying, and shares are burned when selling.
Offers essentially unlimited liquidity.
Very large orders can be processed without significantly impacting the share price.
Purchasing on Other Exchanges (DEXs/CEXs)
Relies on market participants to provide liquidity (DEXs) or place orders in the order book (CEXs).
Dependent on the liquidity provided by market participants.
Large orders may significantly affect the share price due to limited liquidity.
New Shares Issuance: When you buy a fund share on EarlyVentures, we either issue new shares (mint) or delete shares (burn), depending if you buy or sell. This means we essentially offer unlimited liquidity, enabling us to process very large orders without impacting the share price significantly.
Dependent on Market Liquidity: Buying shares on DEXs or CEXs relies on market participants to provide liquidity (for DEXs) or to place orders in the order book (for CEXs). Consequently, large orders may significantly affect the share price due to the available liquidity or lack thereof.
