Coinbase (NASDAQ:COIN) shares are on the move on Thursday after the cryptocurrency exchange revealed plans to buy FairX.
Let’s take a look at everything investors in COIN stocks need to know about this offer below!
- First, FairX is an exchange of derivatives regulated by the CFTC, or a specific contract market.
- Coinbase is gaining it as it moves in the direction of offering regulated crypto derivatives on the market.
- It will start by using its own FairX ecosystem.
- However, it eventually intends to bring this to Coinbase users in the US
- The company hopes that this will bring derivative financial instruments to more customers with additional easy access.
- Coinbase does not disclose how much it costs to buy FairX.
- He says he expects the transaction to close in the first fiscal quarter.
- Until then, FairX will continue to operate as usual.
Coinbase includes the following statement in its FairX purchase blog.
“Deepened and liquid derivatives markets are essential for the functioning of traditional capital markets. These products are in high demand among investors who want to effectively manage risk, implement complex trading strategies and gain exposure to cryptocurrencies outside existing spot markets. The development of a transparent derivatives market is a critical turning point for any asset class and we believe it will enable further participation in the crypto-economy for both small and institutional investors.
Shares of COIN started jumping on Thursday and then fell below their closing price on Wednesday. It has climbed back since then and is now largely unchanged from yesterday’s conclusion.
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On the day of the publication of William White did not hold (directly or indirectly) any positions in the securities referred to in this Article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.
Article printed from InvestorPlace Media, https://investorplace.com/2022/01/coin-stock-8-things-for-coinbase-investors-to-know-about-the-fairx-acquisition/.
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