Trading in Pre-IPO Companies Is Taking Off in Popularity. Here's Why That's Bullish for Crypto.
Crypto is creating a parallel market where investors can value companies before they go public.
Overview
Individual investors typically can't buy or sell shares in companies before their initial public offerings (IPOs). But that all changed in the weeks leading up to the highly anticipated Space Exploration Technologies (NASDAQ: SPCX) IPO.
Starting in mid-May, crypto investors could buy and sell pre-IPO shares in SpaceX, using financial derivatives traded on the Hyperliquid (CRYPTO: HYPE) decentralized cryptocurrency exchange. As can be imagined, a speculative frenzy soon ignited as crypto investors attempted to predict SpaceX's future valuation before it officially went public on June 12.
Details
Let's take a closer look at what pre-IPO trading could mean for crypto investors.
Source
Originally published at www.fool.com.