Multiple major crypto exchanges have cancelled their SpaceX IPO campaigns and issued full refunds after allocation issues disrupted one of the most anticipated tokenized stock offerings tied to the record-breaking public debut. According to Binance's June 12 announcement, the exchange cancelled its SpaceX IPO subscription campaign 'due to circumstances outside of our control' and will return all USDC contributed by participating users. Bybit confirmed that subscribed users would not receive SpaceX allocations after xStocks reportedly failed to deliver the underlying assets required for distribution, with the exchange stating 'Due to xStocks' inability to deliver the underlying assets, no SpaceX allocations were received'. Bitget made a similar announcement, stating it was unable to secure and distribute allocated SPCXx tokens, with users receiving full refunds including fees, future tokenized IPO whitelisting privileges, and a gas fee voucher. Binance users will also receive a share of $1 million worth of SpaceX bStocks tokens as compensation, with rewards to be credited by June 18.
Despite allocation problems, SpaceX shares surged as much as 20% after debuting on Nasdaq, pushing the company's valuation above $2 trillion after it entered public markets with an initial valuation of roughly $1.77 trillion. According to crypto.news, the rally pushed the company's valuation above $2 trillion after it opened trading on Nasdaq at $150 and climbed as high as $173.22 during its first trading sessions. The strong debut quickly elevated SpaceX into the ranks of the largest publicly traded companies in the United States, surpassing firms including Meta, Tesla, and Broadcom by market value. Investor orders exceeded $350 billion before trading began, while Bybit noted that the offering was oversubscribed by more than four times, demonstrating exceptionally strong demand for SpaceX shares.
The allocation shortfall occurred as SpaceX began trading on Nasdaq under the SPCX ticker on June 12 after raising $75 billion at a $1.75 trillion implied valuation, setting a record for IPO proceeds. According to The Block, SpaceX sold 555.6 million shares at $135 each, creating significant supply constraints for tokenized platforms. Kraken emphasized that underwriters decide how shares are distributed, with allocations potentially being pro-rata, random, tiered, or relationship-based, and high demand often producing partial or zero fills. The affected platforms all route through xStocks, the tokenized equities framework issued by Backed Assets, with Kraken having acquired Backed in December 2025 as part of its tokenized equities expansion. One person familiar with the matter told CoinDesk that xStocks and its distribution partners gathered more than $1 billion in customer orders, but when underwriters finalized allocations, many of those requests went unfilled. The disruptions highlighted growing pressure on tokenized equity systems as retail demand for SpaceX exposure significantly exceeded the amount of shares available across tokenized distribution platforms.
Once converted to bStocks, the assets can be traded continuously on Binance's spot market rather than being restricted to traditional stock market hours. According to Binance, users can withdraw bStocks to Trust Wallet, Binance Wallet, hardware wallets, and other compatible addresses. The company also stated that the assets can be deployed in supported decentralized finance applications. Price tracking will rely on oracle feeds that keep the tokens aligned with the value of underlying stocks, while on-chain settlements are completed instantly and redemptions back into direct stock holdings take place during regular market trading hours. Binance's SPCXB token is designed to track SpaceX shares and is backed 1:1 by real shares held through regulated custody structures, as confirmed by the exchange.
Despite some market participants having anticipated that the largest IPO in history could pull liquidity away from digital assets, crypto markets have so far shown little evidence of a significant capital drain. Instead, the listing has fueled one of the busiest periods for tokenized stock products across crypto trading platforms. Exchanges and blockchain-based investment platforms have moved rapidly to offer synthetic or tokenized exposure to SpaceX as investor demand has extended beyond traditional equity markets. Binance founder Changpeng "CZ" Zhao commented on the decision, stating 'Protect users when things don't go as planned'. Attention is now turning to the next phase of trading activity, with options on SpaceX shares expected to begin trading next week and investors already discussing future public listings involving companies such as OpenAI and Anthropic. The SpaceX IPO campaign represents Binance's broader strategy to connect traditional capital markets with onchain financial markets, though the recent cancellations highlight the challenges of securing sufficient underlying assets for tokenized securities. As Olivia Vande Woude, who leads tokenization business development at Ava Labs, noted, 'Blockchain rails performed as designed' - the problem was 'the work of actually sourcing the shares' rather than technological failure.
