Cryptocurrency Platforms Withdraw SpaceX IPO Offerings, Commit to User Refunds
Leading cryptocurrency platforms such as Bybit and Binance have terminated their tokenized SpaceX IPO offerings and committed to refunding users, citing xStocks as the source of allocation failures.
Leading cryptocurrency exchange platforms including Bybit, Binance, Bitget Wallet and MEXC have pulled the plug on their tokenized SpaceX IPO offerings and committed to providing full refunds to participants as SpaceX made its public debut on the Nasdaq exchange on Friday.
Nevertheless, prominent cryptocurrency exchanges that had been providing tokenized participation in the IPO found themselves unable to meet the demand for SpaceX token allocations, with multiple platforms pointing fingers at xStocks, owned by Kraken, for failing to provide the necessary underlying assets.
Among the first to make a cancellation announcement was Bybit, which had been providing tokenized SpaceX access through its newly launched Bybit IPO Express service.
The SpaceX tokenized IPO initiative from Binance, which successfully attracted deposits exceeding $557 million in USDC, announced its inability to move forward with the campaign citing "circumstances outside of our control." The Binance Wallet platform had similarly been dependent on xStocks for the offering.
Both Bitget Wallet and MEXC announced they would issue refunds to impacted users following their failure to obtain an allocation of the tokenized SPCX from xStocks.
It's disappointing that this didn't work out in the end. We are in the process of sending out the refunds,
Bitget Wallet chief operating officer Alvin Kan said on X.
"Yes, we have hit a setback, and trust in the industry has taken a blow, but we'll come out of this stronger," he added.