A number of early investors and executives have reportedly sold large amounts of their Coinbase shareholdings shortly after COIN was listed on stock trading platforms last week. Citing “insider activity reports,” CoinTelegraph reported on Saturday that multiple executives “sold a high percentage of their stake” in Coinbase. However, a representative of the company told the publication that the sellers “maintain strong ownership positions.”
According to data from Capital Market Laboratories (data that was later confirmed by filings on Coinbase’s Investor Relations website), insiders have sold some 12,965,079 shares, collectively worth over $4.6 billion at COIN’s $344.38 per share at the close on Friday.
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According to CoinTelegraph, some of the larger sales include Coinbase CFO, Alessia Haas selling 255,500 COIN shares at a price of $388.73 (roughly 15% of her holdings). CEO Brian Armstrong sold 749,999 shares (less than 2% of his holdings) in three separate transactions, bringing in a total of $291,827,966. After the sales, Armstrong still holds 300,001 shares valued at more than $1 billion.
Misinformation about the Nature of Coinbase Insider Sale Shares Proliferated on Twitter This Weekend
A number of voices in the cryptocurrency community have criticized the way in which the sale of the shares was covered. Specifically, that headlines seemed to emphasize the number of shares or the amount that they sold for, but not the percentage of holdings they represented.
COINBASE CEO SOLD $291 MILLION OF HIS SHARES ON OPENING DAY.
Coinbase CEO sold 1.5% of his shares on opening day.
— Michael Batnick (@michaelbatnick) April 18, 2021
However, some crypto community members are unsatisfied. Twitter user @parlenicjj wrote in response to Frank Chapparo’s tweet: “Keyword ‘sold’, not ‘buy.’ That’s all that matters (sic).”