$COIN did a direct listing, so I think execs and employees selling their shares on day 1 is working as designed?

Lockup periods come from the traditional IPO process, where the company creates new shares that are sold on day 1.

As reported here [1]:

Unlike most tech founders, Armstrong will be able to sell shares right away after Coinbase goes public. That’s because there’s no lock-up period as part of Coinbase’s direct listing, which differs from an IPO in that the company doesn’t raise fresh capital but instead allows existing shareholders to sell stock on the open market.

[1] https://www.cnbc.com/2021/03/23/coinbase-ceo-armstrong-owns-...

In direct listings there is no lockup period, I believe, unlike in traditional IPOs.

Coinbase went with a direct listing, not a traditional IPO.

it is for direct listings