Following the news of Coinbase becoming a publicly traded company, a few investors backing Coinbase sold their portions to acquire significant profits. The Intercontinental Exchange and Union Square Ventures have filed out their Coinbase shares to earn $1.2 billion and $1.8 billion respectively.
Union Square Ventures Mark Dumping of COINs
The giant crypto exchange went public on Nasdaq achieving a significant milestone in mid-April. The first few trading hours went highly volatile where the surge above $400 and dump below $300 is experienced at the same time.
According to reports, big names for example Union Square Ventures have also disposed of its COIN shares after the direct listing of Coinbase. The firm deposited $2.5 million in the exchange on which Fred Wilson, the co-founder of Union Square Ventures justified the move by stating “it’s a gut bet.”
The report says “Fast-forward eight years and the ‘gut bet’ became the company’s most profitable exit.”
Approximately, 4.7 million COIN were shared worth $1.8 billion on the day when Coinbase went public by the Union Square Ventures.
It’s worth exemplifying the ROI in this case which is roughly 72,000% that it is not bad for a “gut bet.”
International Exchange COIN Shares Too
According to the reports, the volatile behavior was based on who bought and who sold. It was alleged that Coinbase’s own executives have dumped their holding significantly. However, the exchange has been more clear on the matter at the beginning of May.
About 1.4% stake was deposited by the owner of the New York Stock Exchange for $1.2 billion ($900 million net after-tax). International Exchange however sold off its COIN shares, in accordance with its Q1 2021 earning call.
CFO, Warren Gardiner commented, “When you think about the Coinbase proceeds – that gives us some additional flexibility as we kind of move into the rest of the year.”