Tim Sykes’ Take on the Coinbase Nasdaq Debut

After much anticipation, Coinbase Global, Inc. (NASDAQ: COIN) opened today at 1:25 p.m. Eastern, and the first trade was executed at $381 per share. It has since traded as high as $429.54, giving the company a valuation of more than $110 billion.

Coinbase went public through a direct listing, which means the company doesn’t sell any shares ahead of time or go through an underwriter. In a direct listing, there’s no lock-up period either. All existing investors can sell their shares as soon as trading is open.

The early gains didn’t hold as early investors looked to take profits into the massive amount of excitement and media coverage surrounding the direct listing.

At writing, shares traded as low as $310, a decline of $119 per share or 28% off its highs.

Legendary penny stock trader Timothy Sykes was quick to point out to his Twitter followers that retail traders are at a disadvantage in multi-billion-dollar stock debuts like COIN.

He went on to remind traders that the market had changed dramatically in the past few months. Many remember the IPOs for DoorDash, Inc. (NYSE: DASH) and Airbnb, Inc. (NASDAQ: ABNB), which surged off of list prices during their first day of trading.

Sykes also encouraged traders to wait for better trading opportunities.

In the last in a series of three tweets, Sykes asked his followers to vote for the stock they expect to see more panic selling in by the end of the day. The choice was between COIN and HUMBL, Inc. (OTCPK: HMBL).

HUMBL is a much smaller cryptocurrency exchange that trades on the pink sheets with a market cap of about $3 billion. At writing, it fell as much as 25% off of its highs of the day.

At writing, more than 600 people had voted in with COIN in the lead 63% to 37%.

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