In a significant move for crypto traders, Bybit has introduced pre-IPO perpetual contracts for the high-profile Chinese robotics firm Unitree and AI startup Moonshot AI. This expansion enriches Bybit’s already extensive lineup of TradFi perpetuals, now exceeding 200 products.
Unitree is gearing up for its IPO on Shanghai’s STAR Market, with shares priced at 150.80 yuan ($22.37), giving the company a valuation of approximately $9 billion. However, market sentiment appears to be soaring, as traders on Hyperliquid are valuing Unitree at around $93 per share, translating to an astonishing pre-IPO valuation of approximately $38 billion—more than four times its original IPO price.
The hype surrounding Unitree’s IPO is evident, with reports indicating that the offering was oversubscribed 8,000 times, and trading is anticipated to commence between August 17 and August 21. Such overwhelming demand has led to speculation about Unitree’s future growth potential, as evidenced by a tweet from an industry analyst suggesting two interpretations of the market’s enthusiasm: either a belief in Unitree’s explosive growth or a bullish sentiment towards the broader potential of humanoid robots and artificial intelligence.
For those unfamiliar with pre-IPO perpetual contracts, these derivatives allow traders to take leveraged positions based on a company’s projected valuation before it officially lists on a stock exchange. While they don’t confer ownership of shares, they offer an exciting avenue for speculation, with prices expected to align with public market valuations once the company debuts.
Past performance of similar contracts has shown a reasonable accuracy in predicting IPO outcomes, including a close forecast for the Chinese memory-chip maker CXMT, which was only 2.5% off its opening price. In another instance, traders correctly anticipated that SpaceX would debut above its $135 IPO price.
However, there are significant risks involved. The current pricing of Unitree’s perpetual contracts creates a stark contrast between market expectations and the realities of its IPO. Analysts from Allium have cautioned that if shares open at $45—double the IPO price but still 52% below the current perp price—around 33% of long positions could be liquidated. Conversely, a debut price near $128 could lead to the liquidation of roughly 53% of short positions.
The positioning in the trading markets shows a split perspective. While larger investors seem to have a balanced outlook, smaller traders under $50,000 exhibit a bearish sentiment, with 70% of their positions short by value. The two Unitree markets have already accumulated a combined open interest of $9.1 million and a total turnover of approximately $59 million.
Unitree’s impressive revenue of $253 million last year—a staggering 335% increase—alongside the shipment of over 5,500 humanoid robots, has only fueled the excitement surrounding its IPO. With Bybit’s latest offerings, traders now have innovative tools at their disposal to capitalize on the burgeoning growth of companies like Unitree and Moonshot AI before they hit the public markets.
As tokenized stocks gain traction, with $2.38 billion in distributed value and a 123% increase in holder counts over the past month, the landscape of trading continues to evolve, presenting both opportunities and challenges for investors in this dynamic arena.
