Ahead of the much anticipated direct listing on the stock exchange, major U.S exchange, Coinbase’s COIN stock is in possession of a reference price at $250 from Nasdaq.
Although on a slim 24-hour volume of under $4 million , the price is far below the currently FTX pre-trading price of $600.
The reference price is not a direct indicator of the company’s market cap, because the exchange is going public through a direct listing in lieu of an IPO. The valuation, which is at $65 billion is below other estimates ranging between $68 billion and $120 billion,
COIN has not sustained trading in a private placement market, and which the reason Nasdaq made the annoucment that reference price, which reflects past transactions was established by consultation with Coinbase’s financial advisors.
The reference price does not reflect the opening price, the announcement made clear:
Major U.S. exchange Coinbase’s COIN stock has received a reference price at $250 from Nasdaq, ahead of the much-anticipated direct listing on the stock exchange just hours from now.
The price is far below the current FTX pre-trading price of $600, albeit on thin 24-hour volume of under $4 million.
The exchange is going public via a direct listing instead of an IPO, meaning the reference price is not a direct indicator of the company’s market cap. It simply implies a valuation of $65 billion, which is below other estimates ranging between $68 billion and $120 billion.
The Nasdaq announcement stated that the reference price, which reflects past transactions but was established by consultation with Coinbase’s financial advisors, was created due to the fact “COIN has not had recent sustained trading in a private placement market.”
The reference price does not reflect the opening price, the announcement made clear:
“Please note that the reference price is NOT an offering price and nobody has purchased or sold shares at that price. The opening public price will be determined based on buy and sell orders in the opening auction on Nasdaq.”