Coinbase (COIN) IPO Shaky Start

in LeoFinance25 days ago (edited)

Shaky start or is this just opportunistic traders taking profits from an over hyped asset?

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As far as I can tell Coinbase (COIN) peaked at around $429 USD on opening day, and now 48 hours later it's down approximately 24% from that point where the price sits at $325 ahead of Fridays opening day.

I haven't watched many IPO's lately but from what I remember this kind of play is pretty normal?

Early order fill and the price climbs and with it an opportunity to take profits, with the option of filling your bags again later at a better price.

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I haven't participated in many IPO but I have bought a number of ICO's and have seen the same thing happen so this all looks pretty much par for the course.

Current Value Below Previous Valuation

In my post Coinbase IPO Has A Date & A Few Tricks Up Their Sleeves! I wrote about how Coinbase had disclosed that through internal private sales of shares the average value was in the area of $344 USD.

At a current price $325 the shares are actually worth less then what they were internally traded for which is interesting. I guess it is what it is, but certainly those the sold for more are probably feeling better about their sales.

However $325 now doesn't mean that will be the price forever, who knows where things go over the next few month and into Q3.

If the price holds today there might a good opportunity for folks to start getting in at a discount vs opening day.

Ciao for now,

@agr8buzz


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IPOs are a strange lot. There is a lot of money to be made but my experience is before the stock hits the open market.

For the rest of us, non insiders, it is best to wait for a pullback. It comes more often than not.

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right? I feel like almost every IPO I have watched has done something similar.

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There are a few I can remember that ran but most spike up and then drop way back.

The only question is how long it takes. Sometimes it is the first day or a week later.

But it usually happens.

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I think this is normal as we see some EARLY money taking a profit. I think the only IPO that didn't do this was the pumped beyond burger but most know that was bill fucking gates taking his profit so he can work on covid-19 🤣🤣

omg that's a lot to unpack..

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@agr8buzz Great post about IPO's! You got me! This is really something to think about. I believe trading within the opening hours of IPO's is a very common strategy among day traders. Especially IPO's that are hyped early in the morning, in this case Coinbase ;-) I follow alot of IPO's in the nordic region and it seems to be the same case in many cases (7/10 aprox).

Cheers

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