Coinbase has been time and again making news. The San Fransisco based exchange’s recent announcement of going public had got the entire crypto-verse looking at the platform. This was soon followed by the exchange’s interest in involving the banking giant, Goldman Sachs in its IPO. Once again the news is making headlines after prominent cryptocurrency exchange, FTX rolled out tokens related to the San Fransisco-based exchange.
Coinbase Pre-IPO Tokens Rolled Out By FTX
Earlier today, the cryptocurrency exchange FTX made an announcement revealing the launch of the Coinbase Pre-IPO tokens [CBSE]. These tokens were rolled out as part of the Tokenized Stocks product line of FTX which tracks the price of prominent equities. The CEO of FTX went on to tweet about the contracts. The tweet read,
These contracts would permit traders to bet and predict the amount that the Brian Armstrong led exchange would list on the stock exchange. FTX further suggested,
“Coinbase (CBSE) is a pre-IPO contract. It tracks Coinbase’s market cap divided by 250,000,000. CBSE balances will convert into the equivalent amount of Coinbase Fractional Stock tokens at the end of Coinbase’s first public trading day.”
The contracts managed to secure a total trading volume of over $2.1 million just hours after FTX listed the contract. While the exchange was estimated at $8 billion back in 2018, the exchange’s value could surge up to $28 billion after its IPO, a recent report from crypto analytics platform, Messari suggested.
Furthermore, the exchange suggested that if the CBSE balances will reportedly cash-expire to $32 if the exchange fails to list itself by 1 June 2020. The contracts would turn into fractional tokenized stocks. Germany-based FTX partner CM-Equity AG would act as the service provider of the Coinbase contracts. Additionally, FTX in its announcement categorized CBSE tokens under high-risk investment, suggesting that there was a hazard of comprehensive or partial loss with the investment.
The exchange recently unveiled that it was urging Goldman Sachs to lead its Initial Public Offering.