Several crypto exchanges have canceled their planned allocations for tokenized shares of Elon Musk's SpaceX IPO and have begun issuing refunds after failing to secure enough underlying shares to fulfill customer subscriptions.
Bybit said Friday that no users would receive allocations after xStocks was unable to deliver on the underlying assets.
"Due to the xStocks' inability to deliver the underlying assets, Bybit did not receive any allocation," Bybit said in a notice. "As a result, all subscription funds will be refunded automatically." The exchange also said eligible participants would receive an additional 10% reward as consolation.
Bitget announced a similar outcome, saying it was unable to secure and distribute allocated SPCXx tokens tied to the SpaceX IPO.
"The xStocks team made every effort to secure the allocation, but it ultimately wasn't available as expected," Bitget said on X. The company said users would receive a full refund, including fees, along with future tokenized IPO whitelisting privileges and a gas fee voucher.
Binance also canceled its Binance Wallet SPCXx IPO campaign, citing "circumstances outside of our control." The exchange said all locked USDC would be refunded and that participating users would receive a share of a $1 million airdrop of its upcoming bStocks SpaceX token, SPCXB.
Kraken, which acquired xStocks, has still not publicly commented on the status of its SpaceX IPO allocation. The Block has reached out to a Kraken representative for comment.
xStocks offers 1:1 backed synthetic stock exposure primarily for non-U.S. users, with each tokenized share backed by a real share.
SPCX officially listed at around 11:45 AM ET at an opening price of $150, about 12% above the IPO price of $135 per share. SpaceX is Elon Musk’s rocketry and satellite company, and parent of his xAI artificial intelligence firm. The stock has been closely watched not just because of its connections to Musk, the world’s richest man, but also because it will be Wall Street’s largest offering in history, raising $75 billion.
According to a message sent to customers, Kraken received a smaller pre-IPO allocation than expected and was only able to partially fill user orders for SPCX. The exchange intends to refund all unfilled partial orders.
Some users on X are claiming they received partially filled orders totaling 4.2786 SPCX shares.
”I initially committed $5,078, but due to massive oversubscription, the final allocation was only $606.50. The remaining funds were returned to my account,” X user Nazarij Kozachenko said Friday. “Not as much as I hoped for, but I’m glad I got in.”
Several crypto firms also listed pre-IPO perpetual futures, enabling users to trade the stock before it was officially listed. Hyperliquid's SPCX perp was trading as high as 35% above the IPO target price at $183 on Friday morning, before crashing in the lead-up to SpaceX's official listing, to about $152, close to where SPCX actually opened.
Crypto exchanges were not alone in being unable to fully meet customer demand. Some traditional brokers also set lottery systems and other trading restrictions due to the offering being heavily oversubscribed. This is despite SpaceX setting aside up to 30% of its IPO shares for retail, above the 5%–10% typically reserved.
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