Coinbase stock reached a four-month high on Monday as the company opened initial public offering [IPO] access to eligible US retail investors.
COIN briefly traded near the $208 price level before it closed at around $201. It has now gone below $200, but the launch is another step in Coinbase’s expansion beyond crypto trading.
Coinbase brings IPO shares into its app
Coinbase said customers can now request shares in some companies before they begin trading publicly.
The service starts with smart-ring maker Oura’s IPO. Those who are eligible can submit requests through a new section in the Coinbase app once the expected price range becomes available.
Customers must deposit enough money to cover what they request. However, placing a request does not mean an allocation is automatically guaranteed.
Coinbase may complete the order in full, decide to supply less than the number of shares that was requested, or reject it if there is more than the available supply. Those who eventually receive the shares will receive them at the official IPO price.
Coinbase Capital Markets, the company’s registered brokerage arm, provides the service. Apex Clearing will process and hold the shares.
What this means is that customers are buying the real company shares, not the tokenized version or crypto-linked versions of them.
Early sellers face temporary restrictions
Coinbase is working to discourage customers who buy these IPO shares and then sell them immediately after trading begins.
Those that sells their allocation within 30 days may lose access to IPO offerings for the next 60 days. Those who repeatedly sell early could also receive smaller or less frequent allocations in the future.
The company said its system will work in favor of investors who are long-term holders.
Oura’s latest SEC filing is for 50 million shares. It will issue 13.5 million, while existing shareholders will sell the remaining 36.5 million. It may offer another 7.5 million shares if demand is strong.
Coinbase stock remains above long-term support
COIN was down 1.09% at approximately $198.85 at the time of this writing. Despite being down, it remained above its 200-day average near the $193.95 price level.
A move below the $193 level could weaken the recent recovery. On the upside, COIN would need to regain the $203 level before it can challenge the $208–$210 area again.
Final Summary
- Coinbase now lets eligible US customers request IPO shares through its app.
- COIN reached a four-month high before pulling back below $200 on Tuesday.
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