Just hours after announcing it would offer a tokenized version of stock for trading, leading crypto exchange Binance has postponed the listing “due to market volatility.”
Stock tokens allow investors to buy fractions of a share without commission, while also getting dividends. Unlike actual stock holders, however, investors in token stocks have no voting rights in the company.
Binance was set to list the Coinbase Stock Token (COIN) to be backed by actual Coinbase stock ($COIN), which began selling publicly today on Nasdaq. However, as one might expect of a new stock being traded via direct listing, the price is fluctuating as the public figures out what the US-based crypto exchange is worth.
$COIN’s reference price yesterday was $250, but it debuted today 52% higher at $381. It then climbed as high as $424 before sliding to $313. It’s a bit all over the place. While 15% to 20% swings are just a typical Wednesday in crypto markets, they’re less common to stocks–at least, well-established ones.
And Binance, hopeful to cash in on its rival’s big day, isn’t ready to press “go” on COIN/BUSD trading until that volatility settles.
That’s what trading is for, apparently.