Crypto Platforms Forced to Refund Users After Failing to Secure Enough SpaceX Shares

Several cryptocurrency platforms were forced to refund users after failing to secure enough shares for their tokenized SpaceX IPO campaigns. Binance Wallet, Bybit, and Bitget Wallet refunded subscriptions when xStocks received fewer underlying shares than expected.

The cancellations did not result from a blockchain failure but rather highlighted that tokenized stock providers still rely on traditional market allocations. For instance, to issue fully backed tokens, platforms need to receive the real shares required to support them.

SpaceX sought to raise about $75 billion through its public offering, with an early plan reserving 30% of the shares for retail investors. However, strong demand later reduced the retail allocation to the low-20% range, causing retail orders to exceed $100 billion before SpaceX priced its shares at $135 each.

Traditional brokers also struggled to meet customer requests, with some investors receiving only partial allocations. xStocks and its distribution partners collected more than $1 billion in customer orders but did not receive enough shares from underwriters to cover those requests.