Traders Bet Big on Secretive Chip Giant Before Shanghai Debut

Trade.xyz has introduced a new perpetual futures product on the Hyperliquid blockchain, allowing traders to bet on the share price of CXMT before its IPO. This is the fourth pre-IPO product created by Trade.xyz and the first one for a Chinese stock.

CXMT, a chip giant competing with Samsung and SK Hynix, priced its Shanghai IPO at 8.66 yuan per share (approximately $1.28). The company offered 6.69 billion shares, representing 10% of its total shares after the offering, making it the second-largest Chinese IPO ever.

Traders pushed the price of the futures contract as high as an implied valuation of around $500 billion for CXMT shortly after its launch, which is a massive number for a company that hasn't even started trading yet. However, this valuation carries extra risk due to low liquidity and limited regulation.