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Coinbase executives sell shares, Binance CEO Zhao Changpeng emphasizes: Not selling a single BNB

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Coinbase executives sell shares, Binance CEO Zhao Changpeng emphasizes: Not selling a single BNB

Coinbase officially went public on the Nasdaq on the 14th, but its stock price has been declining for several days. Not only has its valuation of over a hundred billion failed to meet expectations, but the subsequent Bitcoin crash may also indicate that Coinbase's listing is a "Buy the Rumor Sell the News" event. Public attention is also focused on the situation where executives are selling their shares.

Directors and Investors Selling $COIN Shares

Open Insider data platform tracks large trades in listed stocks, showing that executives and investors at Coinbase have been selling shares of $COIN after its listing. This includes:

  • CFO Alesia Haas
  • COO Choi Emilie
  • CAO Jennifer Jones
  • CEO Brian Armstrong
  • CTPO Chatterjee Surojit
  • Co-founder Fred Ehrsam
  • Board member Haun Kathryn
  • Early investor Wilson Frederick
  • Board member Marc Andreessen a16z
  • Venture capital Union Square Ventures
Data, image source: Open Insider

CEO Sells 70% of Existing Holdings

The chart above shows recent trades, with sales totaling around $5 billion, where current CEO Brian Armstrong sold 70.1% of his shares at $389.1 per share; CFO Alesia Haas liquidated all her holdings at $388.73 per share, worth nearly $100 million.

CEO Brian Armstrong and CFO Alesia Haas

As mentioned in the earlier SEC filing, the 70% refers to the CEO's existing holdings, not total ownership, with 100% of shares slated for distribution by June 2023.

At the time of writing, $COIN's market cap stands at $67.92 billion, indicating that the sales by Coinbase executives and investors of around $5 billion worth of shares represent only a small portion.

CZ: Not Opposed to Cash Out, We Won't Sell BNB

Binance CEO Changpeng Zhao (CZ) also took note of this news, stating on Twitter:

I'm not opposed to people cashing out, it's their choice and right. Brian has worked hard for 9 years, paving the way for everyone and setting milestones for the crypto industry, very honorable!

However, CZ's subsequent tweet seems to highlight the difference between Binance and Coinbase, pointing out that the Binance team has held 40% of the total BNB supply since its issuance, still valued at over $37 billion after the recent drop on 4/18, and saying:

We have no plans to sell any BNB, and ultimately, we will burn them all.

Direct Listing vs. IPO: What's the Difference?

A Direct Public Offering (DPO) is an alternative to an IPO, with notable companies like Spotify, Slack, Palantir, Asana, and Roblox opting for a DPO.

Unlike an IPO, a DPO does not raise capital externally but rather converts ownership of company members and investors into shares, which are then directly listed for trading on the stock exchange. The initial holders' shares at the time of listing are indeed a source of liquidity and supply, making the sale of shares by Coinbase executives and investors a reasonable choice.