It has been reported that cryptocurrency traders can gain exposure to Airbnb through a pre-IPO derivatives contract directly on FTX. As a pre-IPO product, the performance of the contract is linked to the market capitalization of Airbnb at the end of its first trading day.
However, FTX said that these derivatives contracts “will automatically roll over to Fractional Stocks contracts” at the end of Airbnb’s first public trading day.
The exchange added:
“If Airbnb stock does not list and trade publicly by March 9, 2021, FTX reserves the right to roll back trades on its ABNB product.”
Meanwhile, the derivatives contract is only available on the main FTX exchange. FTX US, which serves US-based customers, has not listed the “ABNB/USD” pair.
It has been analyzed that Airbnb’s stock is set to debut on the tech-heavy Nasdaq exchange, as the online rental marketplace recently increased its target price range to between $56 and $60 a share, up from $44 to $50, according to The Wall Street Journal. A $60 share price would give Airbnb a valuation of $42 billion.
Stock market exchanges better shift into high gear before crypto traders make them irrelevant. The @FTX_Official exchange has preemptively listed a crypto contract for AirBNB ahead of the official IPO. Take that, accredited investors. https://t.co/8ACykIFRk3 — Cointelegraph (@Cointelegraph) December 9, 2020
The new price target would allow Airbnb to raise as much as $3 billion by making it one of the largest IPOs of 2020.
Launched in May 2019, FTX has emerged as one of the largest digital-asset exchanges in the world.
According to CoinMarketCap, it’s currently ranked ninth in total volume.
Thus, Airbnb is not the first stock to be listed on the exchange. Earlier this year, FTX announced LIVE trading of Tesla, Amazon, Facebook, and Nasdaq shares.