Nat Burgess, president of Corum group and former member of the SEC's enforcement division, questioned how the founders would prevent pump-and-dump schemes.
Khatri said Instavest enforces a 14-day holding period for leaders. Additionally, the platform only permits trading on the Nasdaq and NYSE, and does not allow trading in penny stocks. "In our opinion, that eliminates sort of 85 percent of the risk right there," he told CNBC.
