The cryptocurrency community is having a moment following the unexpected news from cryptocurrency exchange Binance. Binance announced that it would be listing rival Coinbase’s stock token after it went public on Nasdaq.
Coinbase’s COIN Unexpectedly Follows Tesla’s Stock Token Listing
On Monday, Binance launched a tokenized stock trading feature starting with Tesla’s shares. Crypto enthusiasts did not expect that the world’s leading cryptocurrency exchange Binance would pick its rival’s stock token COIN after the electric car maker.
Tesla’s stock tokens have experienced a trade volume rise of up to $6.7 million since it started trading on Binance. The trading valuation of Coinbase’s COIN before it started trading was $66.5 billion at a reference price of $250 per share.
The $250 reference price, was not the offering price. The offering price was to be determined after the buy and sell orders came in the opening auction. After listing, Coinbase’s COIN offering price was placed at $381, giving it a valuation of nearly $100 billion. If Tesla’s trade volume is anything to go by, Coinbase can also be optimistic about its listing on Binance.
Binance stated that it is guided by market demand in selecting more stock tokens to list. Granted that Coinbase going public is hot right now, listing its token is a wise business move for Binance.
COIN Trading on Binance To Follow Nasdaq Market Hours
In a message addressed to its clients, cryptocurrency exchange Binance said COIN would be available to trade in fractions once the COIN/BUSD trading pair is open. Binance will maintain its traditional market hours timetable even with the addition of the Coinbase stock.
Moreover, COIN trading on Binance will be available only in the jurisdictions that allow buying stocks on Binance. It means that traders in the U.S., mainland China, and Turkey will not be buying Coinbase’s stock tokens. For those in the legal jurisdictions, the remaining requirements to buy Binance’s stock tokens is passing Know-Your-Customer and other compliance measures.