A person familiar with the matter told CoinDesk that xStocks and its distribution partners collected more than $1 billion in customer orders. However, when the underwriters completed the allocations, many of these requests went unfulfilled.
Binance, Bybit and Bitget received no shares and canceled their offers. Meanwhile, clients of Kraken and xStocks received only a fraction of the allocations they requested.
However, the shortage was not limited to crypto platforms. Data collected by Access IPOs showed that some retail investors at traditional brokerages received only a fraction of the shares they had sought.
An xStocks spokesman said “overwhelming demand” prevented all orders from being fulfilled and that funds linked to unfilled subscriptions had been returned.
The firm’s tokenized SpaceX stock, which trades under the ticker SPCXx, was still floated after the IPO. About $24 million worth of the tokenized shares were circulating on the chain at the time of publication, according to Arkham data. Ondo Finance and Dinari, which did not offer pre-IPO access, also launched tokenized SpaceX products after the company’s market debut.
Lesson for tokenized asset
The episode underscores an important lesson for tokenized assets. Creating a token is easy; securing the real asset behind it is the crucial part.
“What appears to have gone wrong… is that demand significantly exceeded the available supply of underlying shares,” said a spokesperson for tokenization platform Dinari. “If the underlying stock cannot be sourced, allocated and held within the necessary regulatory framework, ultimately there is no asset to tokenize.”
