A person familiar with the matter told CoinDesk that xStocks and its distribution partners have collected more than $1 billion in customer orders. But when underwriters finalized allocations, many of these requests went unheeded.
Binance, Bybit and Bitget did not receive any shares and canceled their offers. Meanwhile, Kraken and xStocks customers received only a fraction of the allocations they requested.
The deficit is not limited to crypto platforms, however. Data compiled by Access IPO showed that some retail investors at traditional brokerages received only a portion of the shares they sought.
An xStocks spokesperson said “overwhelming demand” was preventing all orders from being fulfilled and that funds related to unfulfilled subscriptions had been returned.
The company’s tokenized SpaceX stock, trading under the symbol SPCXx, has always launched post-IPO. According to Arkham data, approximately $24 million worth of tokenized shares were circulating on-chain at press time. Ondo Finance and Dinari, which did not offer pre-IPO access, also launched tokenized SpaceX products after the company’s market debut.
Lesson for the tokenized asset
The episode highlights a key lesson for tokenized assets. Creating a token is simple; securing the actual asset behind it all is the crucial part.
“What appears to have gone wrong… is that demand has far exceeded the available supply of the underlying shares,” said a spokesperson for tokenization platform Dinari. “If the underlying shares cannot be obtained, allocated and held within the necessary regulatory framework, there is ultimately no asset to tokenize.”
