Crypto Exchanges Cancel SpaceX IPO Participation Amid xStocks Issues

SpaceX's historic IPO on the Nasdaq yesterday marked a major milestone for the company, raising $75 billion at a valuation of $1.8 trillion.

The offering was 4 times oversubscribed, with over $250 billion in demand, creating what analysts described as a 'classic pre-mega-IPO liquidity squeeze' that pulled $180 billion out of crypto markets last week.

However, the event also highlighted the challenges facing tokenized stock products in the crypto space. Several major exchanges, including Binance and Bybit, canceled their participation due to issues with Kraken-owned xStocks failing to deliver the underlying assets.

Binance alone had attracted over $557 million in USDC deposits for the allocation, but ultimately returned them to users along with a promise of a $1 million airdrop pool as compensation.