CBSE investors Union Square Ventures (USV) and Ribbit Capital have sold part of their stack. USV has sold about 28% of its outstanding Coinbase shares, while Ribbit has sold about 5%. The two investors have offloaded these shares as Coinbase gears to go public on Nasdaq.
Coinbase recently posted that it filed for S-1 regulatory approval causing its shares on FTX to surge. Based on FTX Exchange data CBSE price has risen by 45% in the last month. This is despite analysts claiming that the CBSE prospectus lacks key details.
For instance, Coinbase has failed to provide a trading history as proof of demand for its shares. The data is vital as it helps with price discovery since CBSE will be using a direct listing to go public. A direct listing allows existing investors to sell their shares instead of making an initial public offering (IPO).
For this reason, it also seems odd that some investors are selling their shares ahead of the launch. However, Coinbase remains attractive as it is expected to surpass $100 billion in valuation after going public.
In addition, speculation is pointing to Goldman Sachs (NYSE:GS) underwriting the public offering. The US bank participating in the CBSE launch will fuel the price hike even further.
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Source: Cryptocurrency - investing.com
