Online investment marketplace Republic listed an offering for a digital representation of SpaceX shares via the platform’s “Mirror Tokens,” or rSPAX, which is a tokenized Contingent Payout Note. The offering had a funding cap of $8 million.
The successful initial public offering (IPO) of SpaceX (NASDAQ:SPCX) should provide an exit opportunity for investors in the vehicle as a Qualified Liquidity Event.
Initially, Republic sought to open the offering to retail investors in the US, but apparently, outside pressure compelled the platform to provide the offering only to Accredited Investors and non-Accredited Investors outside the US. The stated valuation of SpaceX, according to the offering page, was stated at $1.35 to $1.4 trillion. The offering page outlines when investors may be paid: “at the 10-year maturity or at a qualifying event for SpaceX– like an acquisition, IPO, or company dissolution.”
While rSPAX investors may receive a good outcome on the investment, the partnership between Bitget and Republic on IPO Prime, which aimed to support a pre-IPO tokenized offering, was disappointing. The offering, which reportedly generated over $177 million in investor interest, failed when the project was unable to acquire shares.
While some in the online capital formation sector criticized Republic’s attempt to offer exposure to SpaceX prior to the IPO, the initiative highlights the discrimination that federal rules currently impose on smaller investors compared with those with larger bank accounts.
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