The cryptocurrency industry enthusiasts are closely following up the news of much anticipated Coinbase Initial Public Offerings, which seems imminent now post-filing of Form s-1.
FTX, a famous crypto exchange, has listed Coinbase futures contracts to allow its users to speculate the CBSE market capitalization before the IPO launch.
FTX Lists Coinbase Ahead of IPO Launch
FTX focuses primarily on derivatives trading and has rolled out Coinbase futures contract to represent the sticks of Coinbase before the official IPO launch. The Coinbase futures contracts were valued at $240 with a projected valuation of $60 billion. The news of the Coinbase IPO launch is doing rounds in the crypto news circles for quite some time now. The US-based cryptocurrency exchange plans Goldman Sachs to lead the IPO, as the company filed the Form S-1 to US SEC confidentially however did not reveal many details of the same.
The futures contracts allow the traders to speculate and estimate the stock value at which Coinbase will be listed on stock exchanges when it goes public. The contracts, in a way, ascertain the market capitalization of sticks. The contracts would be valid only until the day Coinbase starts trading. The contracts will convert to fractional tokenized stocks if the listing does not happen till the deadline of June 1, 2022. In case the company does not go Public, the futures stock would expire with a cash valuation of $32.
FTX has listed several stocks in the past as well, anticipating public trading by companies. It listed Airbnb before the holiday accommodation giant began trading on NASDAQ. On Tuesday, this week, the Coinbase Futures stocks reached massive numbers showcasing trading volumes of above $2.2 million within few hours of opening. The traders envisioned the high profitability of the pre-IPO futures that surged the price of the stock to $295, approximately a whopping 140 percent increase in the listed price of $125. The CBSE futures become the largest tokenized stock by market size on the FTX exchange.
The exchange announced on Friday launching Coinbase futures trading after receiving regulatory clarity from the authorities. The US-based traders would not be able to trade in the Coinbase Futures.
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