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Coinbase announces proposed direct listing

blog.coinbase.com

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Re: Coinbase announces proposed direct listing

#201

Post by bluedevil2k »

lmm wrote: post #167
bluedevil2k wrote: post #112

Earlier quoted context omitted.

Not entirely true - since people had to enter a single point on their demand curve as a price and quantity of shares (instead of their entire demand curve) the market clearing price was artificially low. Hence the price pop on day one. To think about it more in depth - assume I enter a bid of 100 shares at $100. If the market clearing price is $50, I’ll be awarded 100 shares at $50. However, I was willing to buy far…

You can issue your whole curve as orders, can't you? Something like: buy 50 shares limit $200 on open, buy 50 shares limit $100 on open, buy 100 shares limit $50 on open.

There’s only buy orders in these auctions: buy X shares at Y price.

Re: Coinbase announces proposed direct listing

#202

Post by harryh »

bluedevil2k wrote: post #200
Tinyyy wrote: post #186

Earlier quoted context omitted.

This is complete bullshit, you can enter your entire demand curve into the market with various bids.

No, you’re wrong. You’re not taking a bidders budget into account. If I enter 20 points on my demand curve ans they’re all above the clearing price, I’ll end up being forced to buy the quantities of all my bids. That may totally bust my budget. There are no stop limit orders in these auctions...there’s only a buy order with a quantity and a price.

If you are willing to by 100 shares at $100 or, say, 200 shares at $50 you can enter the following two bids:

100 shares at $100

100 shares at $50

This will satisfy your demand curve.

In a direct listing, the initially listed shares will all transact at the same price (the clearing price).

Re: Coinbase announces proposed direct listing

#203

Post by shawabawa3 »

LockAndLol wrote: post #192

What does this mean for people investing small amounts (~1k) in crypto with Coinbase? Is there additional risk (beyond crypto prices dropping) like Coinbase deciding to simply close accounts in order to get funds in times of trouble due to the stock market acting up? Would private wallets become more advisable?

That doesn't make sense and isn't how the stock market works

Stock prices dropping effect companies only indirectly, in that it may make it harder to secure loans or raise capital through issuing shares

Re: Coinbase announces proposed direct listing

#204

Post by Zetaphor »

LockAndLol wrote: post #192

What does this mean for people investing small amounts (~1k) in crypto with Coinbase? Is there additional risk (beyond crypto prices dropping) like Coinbase deciding to simply close accounts in order to get funds in times of trouble due to the stock market acting up? Would private wallets become more advisable?

Regardless of current or future happenings with Coinbase, a private wallet is always advisable.

If you don't own the keys, you don't own the coins.

Re: Coinbase announces proposed direct listing

#205

Post by imtringued »

meowster wrote: post #142
qixxiq wrote: post #134

Earlier quoted context omitted.

Would bitcoin be where it is today without Coinbase? Not to say it's impossible, but their work and approach definitely helped bring Bitcoin to the masses.

Same reason why the 10,000 BTC pizza was necessary. If no one ever bought anything with Bitcoin, Bitcoin would remain worthless.

Permanent deflation usually ends in hyperinflation. At some point the thing that your magic internet money represents disappears all at once.

Re: Coinbase announces proposed direct listing

#206

Post by imtringued »

aresant wrote: post #5

If there's one thing to take away from the GME debacle it is that organized, incentivized retail investors can make a stock do crazy things. Now take that and multiply it by a factorial with the general interest, shilling, and breadth of the crypto community! Recipe for INSANITY around this listing.

No they can't. That's the entire point. If you short almost all shares of a stock then you are the one who is doing crazy things and other people are just giving you a reason to dance like a crazy monkey.

Re: Coinbase announces proposed direct listing

#207

Post by imtringued »

anewaccount2021 wrote: post #20
marcinzm wrote: post #17

Earlier quoted context omitted.

Then eventually things implode, society collapses, a dictator takes over after claiming they will help the starving masses and so on. Starving masses who have lost their life savings do not make for a good place to live even if you avoid being one of them. Society should be protected from the fallout of capitalism to a reasonable degree.

If you lost your life savings on GME, you deserve to starve edit: the only way you could be losing your life savings on GME is with a dumb, arrogant short position. yes, you should starve...isn't this what a short sale is anyway? A bet that someone else will starve?

People on WSB tell you these things all the time:

Never use margin trading.

Only invest what you can lose.

Remember, they have grown thick skin and know what losing money is like. It only takes one lesson to learn that.

Re: Coinbase announces proposed direct listing

#208

Post by imtringued »

marcinzm wrote: post #24
anewaccount2021 wrote: post #20

Earlier quoted context omitted.

If you lost your life savings on GME, you deserve to starve edit: the only way you could be losing your life savings on GME is with a dumb, arrogant short position. yes, you should starve...isn't this what a short sale is anyway? A bet that someone else will starve?

Personally I prefer to not be stabbed to death by a starving person who lost their life savings on GME so they can steal $10 from my wallet. Massive societal implosions tend to have a large blast radius.

I think you don't appreciate how angry people on WSB are. It's pure distilled anger. They want to relieve that anger somewhere and do it nonviolently. A handful of people losing money is the perfect pressure valve.

If you deny them this opportunity to vent their anger then they are highly likely to stab you, not because they wanted $10 from your wallet, nah it's because they are still angry and want someone to pay for it and going by the events that lead to WW2 a lot of them considered a life to be an equally valid price.

Re: Coinbase announces proposed direct listing

#209

Post by vivab0rg »

MuffinFlavored wrote: post #32
jaywalk wrote: post #6

Obviously this was planned well in advance, but what a day to make this announcement.

How long until Coinbase blocks the buying of popular tickers too because powerful hedge funds tell them?

> How long until Coinbase blocks the buying of popular tickers too because powerful hedge funds tell them?

Plot twist: they already have, and worse. Check the historic BCH fiasco.

Re: Coinbase announces proposed direct listing

#210

Post by bluedevil2k »

harryh wrote: post #202
bluedevil2k wrote: post #200

Earlier quoted context omitted.

No, you’re wrong. You’re not taking a bidders budget into account. If I enter 20 points on my demand curve ans they’re all above the clearing price, I’ll end up being forced to buy the quantities of all my bids. That may totally bust my budget. There are no stop limit orders in these auctions...there’s only a buy order with a quantity and a price.

If you are willing to by 100 shares at $100 or, say, 200 shares at $50 you can enter the following two bids: 100 shares at $100 100 shares at $50 This will satisfy your demand curve. In a direct listing, the initially listed shares will all transact at the same price (the clearing price).

That’s a contrived example though. Say you put 200 shares at $50. If the clearing price is $50, you’ve won 300 shares at $50 - $15,000 total. What if you only have $10,000? I’m saying it’s difficult to a) allow bidders to enter a demand curve b) respect their budget limitations c) keep it easily understandable for bidders.
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