Breaking News: FTX takes the lead in listing Coinbase Pre-IPO products, market price distortion warrants caution in investment risks.

Following Airbnb, the exchange FTX has once again launched its Pre-IPO mode. On the 18th, Coinbase officially announced that it had submitted the S-1 form to the U.S. Securities and Exchange Commission, and once the review is completed, it will proceed with the IPO. FTX, on the morning of the 22nd, introduced a Pre-IPO product allowing users to trade Coinbase CBSE in advance.

Get to Know CBSE pre-IPO Quickly, Watch Out for Price Risks

According to FTX, Coinbase CBSE is a pre-IPO contract that allows users to trade upcoming stocks through cryptocurrency derivatives, including fractional shares. This product will divide Coinbase's stock market value into 250 million shares for calculation, and its value will be converted based on its market value when Coinbase CBSE officially goes public.

If by June 1, 2022, it has not gone public, each share will conclude at $32, equivalent to an $8 billion valuation. The $8 billion is also the rumored valuation of Coinbase in 2018.

However, the opening price has already started at $120, rising to as high as $290 within less than an hour. As Coinbase is still awaiting approval from the U.S. Securities and Exchange Commission to list its shares, the exact timing of its U.S. market debut remains uncertain, and the initial price has not been disclosed so far. Prices on FTX are still defined by the market, so investors should be cautious of risks.

Trading Market Value, Exceeding BNB's Market Value by a Large Margin

Based on the $240 calculation before the deadline, Coinbase CBSE already has a valuation of $60 billion, which is 7.5 times the 2018 valuation. If considering BNB as the stock of the exchange Binance, with a current market value of $4.6 billion and a coin price close to $32, there is still a significant difference in market value compared to FTX.

In the U.S. stock market, stocks with considerable market value like Baidu BIDU at $65.8 billion, even with FTX's opening price of $120, are equivalent to Tencent TME's U.S. market value. Comparing the business scale of Coinbase to Baidu, there should still be significant differences, so please be aware of investment risks.