Key Insights:
- Coinbase pre-IPO trading is now available, kicking off with SpaceX.
- The pre-IPO offers will be available even to users outside the US.
- COIN stock price retreats to February and March support.
Coinbase has sparked interest after announcing the launch of pre-ICO perps. This is the company’s latest exciting move aimed at attracting more traders and boosting accessibility.
Coinbase has been offering perps, but this time, the newly launched offerings are different. This is because the pre-ICO perps offer access or exposure to stocks before they go public.
The official Coinbase announcement revealed that the pre-ICO perps will commence with SpaceX. Moreover, the trading platform will offer round-the-clock access and settle trades in USDC.
This is the latest move by Coinbase, a hybrid exchange targeting both crypto and stocks. The key benefit here, especially for traders, is that pre-IPO trading will boost accessibility. For Coinbase, the move could attract more users and potentially volumes.
Coinbase to Offer the Pre-ICO to Markets Outside the US
One of the most interesting things about the new Coinbase Pre-IPO perps is that they will not be limited to the US market. Thanks to WEB3, they will be available outside the US, albeit in select markets.
Targeting markets beyond the US could yield significant benefits. For example, Coinbase may bring robust liquidity from the IPO, especially if there is robust appeal in foreign markets.
IPOs in the US have historically offered limited access to investors outside the country. That is why Coinbase’s decision to offer pre-IPO access could attract many investors.
Moreover, the fact that Coinbase has been prioritizing tokenization means the process will be much easier than traditional pre-IPO offerings. The pre-IPO perps will also be available for future IPOs. This means the platform could become quite an attractive broker on a global scale.
The pre-IPO perps were not the only interesting crypto news related to Coinbase. The exchange reportedly supported the first Federal Housing Administration-backed home purchase using Bitcoin.
This is one of the first purchases of its kind, and Coinbase played a noteworthy role. A proof of concept highlighting how crypto and blockchain can be used in the real-world, especially the real estate market.
COIN Stock Price Revisits Historic Support Level After a Bearish Performance
While the above developments underscore Coinbase’s expanding influence across traditional markets, its stock price maintained a bearish bias for more than 2 weeks.
In fact, the COIN stock price reverted to its 4-month consolidation zone after failing to achieve a breakout last month. This mirrored the overall performance of the crypto market.
More importantly, the COIN stock price is now within its consolidation zone support level after tanking by more than 26% from its local peak in May. COIN stock price exchanged hands at $164 at press time.
COIN stock price was not yet overbought at the time of observation. This suggests it could still fall further if current market conditions persist.
The last time that the stock fell below the current levels, it bottomed out at $139. Sustained FUD and bearish conditions could push it below $150 this week or month.
On the other hand, COIN stock may bounce back from the current support level if investors perceive it as an accumulation opportunity.
The fact that Coinbase has been positioning itself not just as a crypto stock but extending operations into traditional assets may boost its appeal. This is why many analysts consider it one of the top crypto stocks this year.
