Crypto exchanges Bybit, Bitget, and Binance have canceled their tokenized share allocations for SpaceX's IPO due to a failure to secure underlying shares. Refunds are being issued, with some exchanges offering additional compensation.
The failure of multiple crypto exchanges to deliver tokenized shares for a high-profile IPO highlights the risks and complexities of digital asset offerings tied to traditional markets, potentially impacting investor confidence in such products.
Several cryptocurrency exchanges, including Bybit, Bitget, and Binance, have canceled their tokenized share allocations for Elon Musk's SpaceX IPO. This decision follows the inability of platforms like xStocks to secure and deliver the necessary underlying shares to fulfill customer subscriptions.
Bybit announced that no users would receive allocations due to xStocks' failure to deliver the assets, leading to automatic refunds of all subscription funds. The exchange also stated that eligible participants would receive an additional 10% reward as compensation.
Bitget reported a similar outcome, citing difficulties in securing and distributing the allocated SPCXx tokens. Users will receive a full refund, along with future tokenized IPO whitelisting privileges and a gas fee voucher. Binance also canceled its SPCXx IPO campaign, refunding locked USDC and offering participants a share of a $1 million airdrop of its upcoming SPCXB token.
Kraken has not yet publicly commented on the status of its SpaceX IPO allocation.