Coinbase Pre-IPO Contracts Now Trading on FTX, Price Surged 145% Within an Hour
CBSE contracts recorded US$2.25 million in trading volume on its debut day, and its price went as high as $296.
Crypto derivatives platform FTX has now listed Coinbase’s pre-IPO contract with ticker CBSE.
Unlike tokenized stocks but much like Airbnb’s Pre-IPO contracts, they track the market cap of Coinbase. These contracts are tradeable with up to 5x leverage.
CBSE balances will be converted into the equivalent amount of Coinbase Fractional Stock tokens at the end of Coinbase’s first public trading day on June 1, 2022. If Coinbase does not publicly list by then, CBSE balances will cash-expire to US$32, which is in line with Coinbase’s $8 billion valuation.
The contract started trading at around $120 today and went just above $296 in less than an hour. Ever since this significant uptick within the trading’s early hours, the contract’s price has been trading around $240.
At one point, Coinbase Pre-IPO contracts were traded at an implied $70 billion market price, which made the San Francisco-based cryptocurrency exchange’s worth at 20% of BTC, 100% of ETH, and 300% of total DeFi market cap.
The contract tracks Coinbase’s market cap divided by 250,000,000. These contracts have garnered tremendous attention, as evident from about US$2.25 million trading volume.
These Coinbase pre-IPO contracts are recording more volume than SRM/USD and much higher than ABNB’s under $2,500 on the exchange.
Coinbase announced its plans of going public just before the weekend, for which the largest US crypto exchange has hired Goldman Sachs Group.
Founded in 2012, Coinbase has more than 35 million users all over the world.
It confidentially applied with the US SEC on Thursday to go public, a move that would make it the first significant crypto company to be listed on the stock market. Crypto data provider Messari valued the exchange at $28 billion following this news.