Three major crypto exchanges—Bybit, Binance and Bitget—canceled their tokenized SpaceX IPO allocation campaigns on Friday, citing xStocks' inability to source underlying shares. The cancellations came alongside SpaceX's landmark IPO on the Nasdaq, which left crypto users seeking tokenized exposure empty-handed.
xStocks, the platform behind the tokenized offerings, could not deliver the promised shares, triggering the cancellations. By contrast, rival onchain protocols from Ondo, xStocks' DeFi arm, and Backpack launched successfully on the same morning, underscoring the split between failed centralized and successful decentralized approaches.
The affected exchanges have promised refunds to users who participated in the campaigns. The incident highlights the risks of tokenized asset products that depend on brokers sourcing physical shares, a model vulnerable to gaps in liquidity or regulatory hurdles.
A counter_argument: xStocks' own DeFi arm managed to launch, suggesting the failure may stem from logistical or compliance issues specific to its centralized exchange partnerships rather than a fundamental flaw in tokenized IPO products. The broader market for tokenized real-world assets continues to grow, with alternatives already filling the void.