TechFlow news — Previously, market rumors suggested that the Coinbase team had dumped the majority of its shares. However, blogger DeFi100 stated this is a major misunderstanding. The actual situation is as follows: According to filings submitted to the SEC, only 20% of shares were registered for direct listing; the so-called "100% sell-off" by the CEO and CFO merely represents a portion within this 20% pool.
Since Coinbase's direct listing does not involve issuing new shares—unlike an IPO—existing shareholders must transfer their old shares to create market supply and enable trading. To facilitate share circulation and liquidity, the Coinbase team and early investors holding pre-IPO shares are required to sell some of their stock.
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