FTX Lists Pre-IPO AirBNB (ABNB) Contract Before Nasdaq Listing on Thursday
Cryptocurrency derivatives platform FTX has listed AirBNB on its exchange before it has even been on NASDAQ. This is currently a Pre-IPO contract, which will be rolled into stocks if and when ABNB gets listed on NASDAQ.
The Pre IPO Contracts offered on FTX represent derivatives contracts whose performance is linked to the market capitalization of the underlying stock AirBNB Inc. with the ticker symbol “ABNB.”
In case, AirBNB stock doesn’t list and trade publicly by March 9, 2021, FTX will roll back trades on this ABNB product. The exchange noted,
“Pre IPO Contracts are settled exclusively by exchanging crypto assets.”
ABNB/USD started trading under $60 on FTX on Dec. 9 and went just above $80. At the time of writing, the contract has been trading at $78.98, up 32% with a volume of US$208,182.
This listing has been made possible with FTX’s partnership with Germany-based CM-Equity AG (CM-E). Through this collaboration only, FTX started offering tokenized shares of some of the world's most famous companies like Tesla, Amazon, Netflix, Apple, and Facebook in October.
These tokenized stocks are tradeable against cryptocurrency pairs like Bitcoin and stablecoins. However, residents of the US and other restricted jurisdictions aren’t eligible to trade these offerings.
These tokenized equity offerings are backed by the shares of actual stocks custodied by CM-Equity.
AirBNB’s initial public offering (IPO) is to go live on Thursday on the Nasdaq stock market in New York. The company raised its shares between $56 and $60 each, up from the $44 to $50 range earlier this month.
This change would let the San Francisco-based house rental giant raise to $3.4 billion in the offering, with a $42 billion valuation, which is an increase from the $18 billion valuations during a private fundraising round in the spring.
Last month, in its IPO prospectus, AirBNB also revealed its tokenization, cryptocurrencies, distributed ledger, and blockchain technologies plans.