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And yet I imagine people will be surprised when they find out that Coinbase insiders have only been selling (and have sold almost $4B worth of) their stocks eve

And yet I imagine people will be surprised when they find out that Coinbase insiders have only been selling (and have sold almost $4B worth of) their stocks every since the direct listing (not even IPO). [0] Chances are, Coinbase was more of your garden variety pump and dump where you hype your useless startup up, and dump it on retail at a hugely inflated "market price". [0] https://www.marketbeat.com/stocks/NASDAQ/COIN/insider-trades/ https://www.marketbeat.com/stocks/NASDAQ/COIN/insider-trades...

dahdum 4y ago
Your link shows $82M of buying by insiders compared to just $47M of selling over the past 12 months, so I'm not sure I understand your point.
- graeme 4y ago
  Interesting. 100% of buys were from two directors, Tobias Lutke of Shopify and Fred Ehrsam, former cofounder. 100% of sells have been management.
  - ddulaney 4y ago
    Management selling is pretty typical. You'd have to dig into Coinbase specifically, but if a big part of your pay is stock/options, you will generally constantly sell a portion of that. Obviously, a big spike in management sales can be a red flag.
    - graeme 4y ago
      It makes sense, though iirc over the life of Coinbase management has been a large net seller, larger than average. I'm interested the directors have been buying. Is that typical?
- polygamous_bat 4y ago
  Q2 2021 is when it was listed, and when insiders bagged $3.9B. Compare that with the scale of $82M or $47M. After Q3 2021, crypto started crashing and so did COIN stock, so I imagine insiders who knew what's up and wanted to dump got out already.
  - dahdum 4y ago
    They were sitting on large illiquid unrealized gains until the IPO. I can't imagine that's strange behavior in companies going public. Some funds will sell into the IPO as a rule in order to redeploy capital to other early stage investments. For early employees and founders who could have had up to 99% of their wealth tied up in Coinbase stock, some diversification is hardly odd.

dahdum 4y ago

Your link shows $82M of buying by insiders compared to just $47M of selling over the past 12 months, so I'm not sure I understand your point.

graeme 4y ago
Interesting. 100% of buys were from two directors, Tobias Lutke of Shopify and Fred Ehrsam, former cofounder. 100% of sells have been management.
- ddulaney 4y ago
  Management selling is pretty typical. You'd have to dig into Coinbase specifically, but if a big part of your pay is stock/options, you will generally constantly sell a portion of that. Obviously, a big spike in management sales can be a red flag.
  - graeme 4y ago
    It makes sense, though iirc over the life of Coinbase management has been a large net seller, larger than average. I'm interested the directors have been buying. Is that typical?
polygamous_bat 4y ago
Q2 2021 is when it was listed, and when insiders bagged $3.9B. Compare that with the scale of $82M or $47M. After Q3 2021, crypto started crashing and so did COIN stock, so I imagine insiders who knew what's up and wanted to dump got out already.
- dahdum 4y ago
  They were sitting on large illiquid unrealized gains until the IPO. I can't imagine that's strange behavior in companies going public. Some funds will sell into the IPO as a rule in order to redeploy capital to other early stage investments. For early employees and founders who could have had up to 99% of their wealth tied up in Coinbase stock, some diversification is hardly odd.