After San Francisco-based exchange Coinbase announced that it was registering with the U.S. Securities and Exchange Commission (SEC) to have an initial public offering (IPO), FTX Exchange CEO Sam Bankman-Fried said the company was pre-IPO- futures. On December 21, Bankman-Fried announced that the launch was now live and Coinbase pre-IPO futures contracts are now trading at $ 235 per unit.
People can bet on the initial public offering of Coinbase (IPO) by leveraging Coinbase pre-IPO futures contracts on the crypto trading platform FTX Exchange. FTX is known for launching futures markets on interesting stuff like the recent 2020 election results and pre-IPO contracts for Airbnb.
After explaining that FTX can launch pre-IPO futures products for the Coinbase IPO, FTX Exchange CEO Sam Bankman-Fried announced the launch on Twitter.
“Okay, guys we did it,” Bankman-Fried tweeted. “With a spot margin of up to 5x,” added the FTX CEO.
According to the contract specificationsthe “CB pre-IPO contracts” represent a futures contract whose value is tied to Coinbase Inc.’s market valuation. at the end of the first trading day.
The contracts are settled by exchanging crypto assets and being futures products, the FTC CB’s pre-IPO contracts have “no claim to delivery of the underlying nor shareholder rights.” The new FTX Coinbase futures market has seen significant trading volume so far, reaching a volume of $ 2.2 million in the last 24 hours.
At the time of publication, the Pre-IPO Coinbase contracts are trading at $ 235 per unit against the US dollar. Additionally, members of the decentralized financial (defi) community have also created an unofficial Coinbase futures IOU, which was traded on decentralized exchange (dex) platforms such as Uniswap and Sushiswap.
Since the company announced it went public, cryptocurrency advocates have discussed the first-ever public cryptocurrency exchange listing.
“I’m now getting big flashbacks to Amazon’s IPO in the 1990s, when I was a trader on a big sales counter,” one person tweeted. “Feels very similar in several respects, including the industry background and public sentiment, the latter of which included a tremendous amount of skepticism and contempt,” he added.
There have been many guesses as to what Coinbase will be worth after the IPO and some estimates think it will be more than “$ 28 billion.The San Francisco exchange has grown enormously with more than 35 million users in more than 100 countries.
Coinbase has already raised $ 500 million in equity from Greylock Partners, Andreessen Horowitz, MUFG, Tiger Capital Management and more. In 2018, Coinbase raised $ 300 million in a Series E funding round and was estimated to be worth approximately $ 8 billion.
What are your thoughts on the pre-IPO futures contracts for the Coinbase IPO? Let us know what you think about this topic in the comments below.
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