Make sure to check out the follow-up to this post when you're done: Coinbase stock to 100x in 5 years. $COIN "IPO" went live yesterday [Part 2 of 2]
I've mentioned in three separate posts that I wanted to write about the Coinbase "IPO" (quotes around "IPO" because I understand it was actually technically an initial direct offering or IDO... I still don't understand all of the nuances). The Coinbase stock ticker, $COIN, went live for general trading yesterday, Wednesday, April 14, 2021. In each of my three prior posts, I said that I would post about the Coinbase "IPO":
1. VeChain and SalesForce team up... Blockchain as a service entering large cap stock sector
2. Key Observations of Meta Market Cap. What is the DeLorean Method?
3. $SOV Trading kicked off with a bang! rBTC (Smart Bitcoin), the RSK Network, & How to get involved now!
I would have liked to have shared a lot more information with you guys in advance of the "IPO". However, it may be for the best that I didn't get around to it before general trading opened. I suppose I could have given more specific updates about what I was learning from the many videos I watched over the past week about the IPO... or how I was having a hard time finding a brokerage where I could sign-up and buy $COIN in advance of the "IPO". I had heard that some people were able to trade COINBASE stock early and I wanted to know how. I was hoping there was some sort of synthetic or derivative trading on a decentralized exchange so that I could buy the Coinbase "IPO" early and have the freedom to trade it as long as there was sufficient liquidity staked in a Coinbase Stock-Peg / Stablecoin liquidity pool and a Coinbase Stock-Peg / ETH liquidity pool. I still haven't found anything quite like this. I was really tempted to sign-up for FTX after seeing Invest Global's video, "Trade Coinbase IPO Early?! How to Buy CBSE Step by Step Guide {FTX Explained}". I hesitated at first because I didn't have a good sense of whether the valuation seemed accurate. With presales, ICOs, and IPOs, unless I think the valuation is very low, I generally prefer to allow the the market to hammer out the price a bit before I get involved. I've never actually participated in a conventional stock market IPO where I signed up in advance to buy IPO shares, so I also wasn't sure where to start looking.
But as I began to explore more, I eventually decided to pass on using FTX for this purpose. If there was one particular reason that was the deciding factor it would have to be KYC. However, it was also the combination of potential problems I didn't want to deal with which led me to pass. The first is that FTX's pre-IPO contract was a little confusing for me. The second was that FTX appears to be restricted in the United States. While I can still access FTX with a VPN, I have no plans of investing large sums in exchanges where I have to worry about being locked out due to KYC. FTX just looks way too centralized to deposit funds onto their custodial platform. If they were a true DEX and I only had to use a VPN to access the dApp, that would be different. However, this looks a lot like my US money is going to get stuck on FTX when I try to withdraw and I'm forced to KYC. At this moment I have around $2,500 in crypto that is stuck on various exchanges which require me to pass KYC in order to withdraw. I'm so sick of this and angry about it, I'm not inclined to repeat the mistake.
At first glance, FTX appears to be similar to Injective, Synthetix, or Mirror Finance. I am very bullish on projects which are bootstrapping tokenized stock-pegs to trade on decentralized exchanges. There is a huge appetite for this in the market. So I was initially really excited when I discovered FTX and thought they were tackling this problem in some way. I had hoped that they were liberating conventional stocks and other assets to trade on the blockchain where centralized brokerages do not have the power to disable buys only, while leaving sells enabled, and other market manipulation tactics we saw with the Gamestop-Robinhood fiasco. I was considering using FTX to buy some $COIN (or some $CBSE which was FTX's complex pre-IPO instrument representing $COIN with confusing caveats and conditions). But then I realized that FTX is a centralized crypto exchange that is closed to US customers and their Coinbase pre-"IPO" market is confusing (and in hindsight, probably inflated by a combination of FOMO and confusion caused by the complexity of the $CBSE conversion). So it was ultimately, a very good choice not to participate in this offering by FTX.
I didn't feel great about FTX's Pre-"IPO" Coinbase market, because I didn't understand it well enough to take decisive trading action with this confusing instrument. As far as centralized exchanges go, FTX seems pretty cool... I guess... if you're not in the US. I'm just not very excited about it here in the US. I'm glad they provided a form of pre-"IPO" market for $COIN. But I'm also glad that I didn't participate in it. First, because I'm pretty sure my US funds would eventually get stuck there. Second, because it looks like everyone who bought pre-ICO on FTX paid a huge premium for those shares.
For the screen capture below, I tried to get my cursor exactly on '14 Apr '21 10:00' because that's when Robinhood $COIN trading went live, so we can compare the two charts based on this time-stamp. $COIN opened at $381 per share on Robinhood at 10:00 am Pacific Time. So it looks like everyone who bought the pre-ICO $CBSE / $COIN instrument on FTX overpaid by a lot. Maybe I'm missing something about the conversion in the fine print, but that's what it looks like to me. So, you're welcome for not steering you into buying the Coinbase "IPO" on FTX. Hindsight shows us that you would have been a lot better doing what I did... which was basically to stumble across $COIN trading on Robinhood a few hours after the opening pump and dump when the price was at a low of $310-$320 per share. I only bought a few shares, and the great timing of my buy was partially luck. It was good fortune. My Robinhood DOGE was pumping just as $COIN had reached it's opening day floor, so I sold some doge and bought some $COIN.
I may have also had a clearer head than usual, because I wasn't experiencing a ton of FOMO about the Coinbase IPO. I still had unanswered questions about the market cap and supply. I knew that I wasn't going to miss out on a 100x gain on $COIN in the first week, because the valuation was already pretty high in the tens of billions. Moreover, I wasn't sure about how the mechanics of the IDO would impact the price. I read some commentary which suggested that IDOs may be more prone to opening price dumps due to the lack of vesting period restrictions required in traditional IPOs. For all of these reasons, I was not chomping at the bit to buy pre-"ICO" $COIN. With that said, if there were an easy and trusted method for me to have done that, I probably would have.
If one of my existing brokerage accounts offered $COIN before the bell rang or immediately at market open, I might have bought some. I didn't want to open a new brokerage account just to participate in an unconventional IPO for uncertain benefit and possible first-day losses caused by principle shareholders cashing out more than they would be allowed to do with a conventional IPO. If I could have gotten in on a Coinbase pre-"ICO" with a $COIN market cap of $5 Billion (instead of >$65 Billion), I would have been clamoring to open a new account and I would have bought a lot more $COIN. Instead, I waited and bought near the bottom of $COIN on Robinhood yesterday. Today, I'm finally getting around to finishing writing about it. However, this post is already getting a bit too long-winded, so please come back for Coinbase stock to 100x in 5 years. $COIN "IPO" went live yesterday [Part 2 of 2]. In Part 2, I will describe the image below, how I finally entered my position in $COIN, and explore the utility and market for stock-pegs on the blockchain. I couldn't fit all of that in a single post.
Thanks for reading! I look forward to engaging with your comments below. Please like, tip, and subscribe if you found value in this post!
#GetInMyDeLorean #FluxCapacitorHyperGrowth #LowCapValue #MetaMarketCap #B2TF #BlockToTheFuture
-NOVAX
Read the follow-up to this post: Coinbase stock to 100x in 5 years. $COIN "IPO" went live yesterday [Part 2 of 2]
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Block To The Future Referral Links
Coinbase (necessary evil for buying crypto with USD)Phemex (alternative to coinbase to buy and trade crypto, barely used so far)FTX (synthetics market for trading stock-pegs on the blockchain)Kucoin
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Bittrex (meh, okay... also has USD buy option)
Binance (used to love it, now, not so much)
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Robinhood (get free stock for signing up then dump Robinhood when we have a good blockchain synthetics market)
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OpenSea (huge NFT auction site)
Internxt (cloud storage service. just started using it. will let you know how it goes. interface is a little rough with no image previews on desktop)
SALT (crypto lending platform. haven't used it much yet. will report how it goes)
Virtual Private Server Referral Links for Running Nodes
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Other Stuff I'm Shilling
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