Crypto exchange FTX listed Coinbase’s futures contracts before its initial public offering (IPO).CBSE pre-public offering contracts allow investors to speculate on what price Coinbase will list on an exchange. In other words, the contracts follow Coinbase’s market value.

The company’s value skyrocketed

At the time of writing, the contracts show Coinbase’s market value at approximately $ 58 billion.

Contracts expire at the end of Coinbase’s first trading day on an exchange or on June 1, 2022. Contracts will automatically become fractional tokenized stocks if the listing doesn’t happen by date.

Contracts also support margin trading with up to 5x leverage. A few hours after being listed today, the contracts saw a trading volume of about $ 2.1 million as of this writing.

FTX CEO Sam Bankman-Fried said, “It’s a pretty healthy volume so far.” He said that Coinbase contracts are one of the most asked products.

The provider of brokerage services for contracts is Germany-based FTX partner CM-Equity AG.

Second product

Coinbase pre-public offering contracts are the second such product to be listed by FTX after Airbnb. Bankman-Fried said last week that the exchange could list its Coinbase and Robinhood pre-IPO contracts.

The Coinbase contracts came after the exchange filed a confidential S-1 form with the US Securities and Exchange Commission on Thursday.

See Also
Bitcoin Miners Failed to Demand

It should be noted that like FTX’s other products, pre-IPO contracts are not available to US residents.

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