Major Crypto Exchanges Cancel Tokenized SpaceX IPO Allocations Due to Share Shortage
The highly anticipated SpaceX IPO has caused major disruptions in the crypto market. Several leading cryptocurrency exchanges have canceled their tokenized share allocations. This happened after platforms failed to secure enough underlying shares to fulfill massive customer demand.
Bybit, Binance, and Bitget Issue Full Refunds
Three major crypto platforms announced cancellations on Friday, forcing them to roll out compensation plans for affected users:
- Bybit: The exchange confirmed it received zero allocation because its partner, xStocks, could not deliver the underlying assets. Bybit is automating full refunds and giving users an extra 10% reward as consolation.
- Bitget Wallet: The platform failed to secure the SPCXx tokens tied to the IPO. Bitget is issuing full refunds, including fees, alongside future tokenized IPO whitelist privileges and gas vouchers.
- Binance: Citing circumstances outside its control, Binance canceled its wallet campaign. It is returning all locked USDC and offering affected users a share of a $1 million airdrop of its upcoming SPCXB token.
Kraken’s xStocks Struggles with Overwhelming Demand
Kraken, which recently acquired the tokenized stock platform xStocks, addressed the situation. The company stated that a massive wave of oversubscription prevented them from fulfilling all orders.
The xStocks platform offers 1:1 backed synthetic stock exposure for non-U.S. users. This allows assets to be traded onchain outside traditional market hours. Kraken received a much smaller pre-IPO allocation than expected, forcing them to partially fill orders. For example, one user reported that their $5,078 commitment was cut down to an allocation of just $606.50.
SpaceX Listing Sparks Historic Market Action
Despite the supply crunch, the tokenized stock SPCX officially listed at $150 per share. This was roughly 12% higher than its initial IPO target price of $135.
Why the SpaceX IPO is Historic: > SpaceX is Elon Musk’s premier rocketry and satellite firm, which also serves as the parent company of xAI. This debut marks the largest offering in Wall Street history, aiming to raise a record-breaking $75 billion.
High Volatility for Pre-IPO Crypto Derivatives
The frenzy surrounding the stock was visible across crypto derivatives markets well before the launch. On decentralized platforms like Hyperliquid, pre-IPO perpetual futures for SPCX soared 35% above the target price to hit $183. However, prices crashed back down to around $152 just before the official listing.
Traditional finance brokers also struggled to handle the volume. Many legacy brokerages had to implement strict lottery systems and trading limits due to heavy oversubscription. This shortage occurred despite SpaceX reserving an unprecedented 30% of its IPO shares specifically for retail investors.
