FTX Pre-Trading of COIN Sees Violent Repricing Ahead of Coinbase Listing
Overzealous FTX users get burned as reports suggest a vastly cheaper COIN on NASDAQ.
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While recent reports expect COIN to open around $349 a share, pre-trading on FTX had pitted the Coinbase stock at $640. A violent repricing has since followed, with the asset falling more than 30% on the crypto trading platform.
FTX Users Overestimate COIN
After a steady increase in the last few days, COIN/USD on FTX hit its all-time high above $640 a few hours ago. However, reports announcing COIN was expected to open at $349 provoked a drastic drop on FTX.
COINBASE GLOBAL CLASS A SHARES INDICATED TO OPEN AT $349 IN NASDAQ DEBUT$COIN
— *Walter Bloomberg (@DeItaone) April 14, 2021
The Nasdaq has provided a $250 reference price for the stock, pricing it at $65.3 billion. However, as the company chose to direct list, there is no way to predict the price of COIN at the end of the day. On FTX, users made the bold prediction of expecting up to $640 a share, which would price Coinbase around $167 billion, in the same bracket as L’Oréal, NVIDIA, Oracle, or Adobe.
Following the above-mentioned tweet, however, the price of COIN/USD has fallen to $448, still significantly higher than the reference price.
Disclaimer: The author owned BTC, ETH, FTT, and a number of other cryptocurrencies at the time of writing.