SpaceX IPO Allocation Shortfall Triggers Refunds Across Binance, Bybit, Kraken and Bitget Platforms

• SpaceX began trading on Nasdaq under the SPCX ticker on June 12 after raising $75 billion at a $1.75 trillion implied valuation.
• Binance, Bybit, Kraken and Bitget users received fewer shares than expected due to limited IPO allocations from underwriters.
• Kraken partially filled orders, while Bybit reported receiving no allocation and refunded users in full.
• Binance cancelled its SPCXx campaign and announced refunds after demand exceeded available supply.
• Exchanges said allocation decisions were made by underwriters, not by the trading platforms themselves.

SpaceX IPO Demand Overwhelms Allocations Offered to Crypto Platforms

Users of Binance, Bybit, Kraken and Bitget received only a fraction of the SpaceX IPO shares they subscribed for after allocations provided to crypto trading platforms fell significantly below demand.

SpaceX officially began trading on Nasdaq under the SPCX ticker on June 12 following a record-breaking public offering that raised approximately $75 billion at an implied valuation of $1.75 trillion. The listing attracted substantial interest from both traditional investors and crypto users participating through tokenized IPO access programs.

In the weeks leading up to the listing, Binance launched the SPCXUSDT Pre-IPO Perpetual Contract, allowing users to trade expectations surrounding SpaceX’s anticipated public market valuation before the company’s stock began trading on public markets.

Several cryptocurrency exchanges had partnered with xStocks and related providers to offer users exposure to the SpaceX IPO through tokenized share subscription campaigns. However, available allocations ultimately proved insufficient to satisfy demand.

Kraken’s growth team said the pre-IPO allocation received from underwriters came in below expectations. According to the exchange, demand from users significantly exceeded the number of shares available, resulting in only partial order fulfillment.

Kraken stated that all unfilled portions would be refunded automatically. Community feedback shared across social media indicated that successful subscribers received identical allocations of approximately 4.2786 SPCXx shares, valued at roughly $578 based on the $135 IPO price. Kraken has not publicly confirmed the reported allocation figure.

Binance Wallet experienced similar demand pressures. Its SPCXx subscription campaign attracted approximately $557 million in USDC from 27,689 participating addresses within a 28-hour period, according to on-chain data tracked through Dune Analytics.

Following the allocation outcome, Binance announced the cancellation of the campaign, stating that circumstances beyond its control prevented it from proceeding as originally planned.

Binance said all USDC locked by participants in the SPCXx IPO campaign will be fully refunded to users’ Binance Wallets through the original payment method. The exchange also announced a $1 million distribution of bStocks SpaceX tokens (SPCXB), which will be allocated equally among all eligible participants, with airdrops expected to be completed by June 18.

Binance added that SPCXB will be listed for spot trading at a later date. Meanwhile, users can continue to gain exposure to SpaceX through SpaceX stock (SPCX), which is currently available on the Binance Stocks platform.

Bybit, Binance and Bitget Announce Refunds and Compensation

Among the participating platforms, Bybit reported the most severe outcome. The exchange disclosed that it received no SpaceX share allocation from xStocks and therefore could not distribute any shares to subscribers.

In a public update, Bybit said all subscription funds would be automatically refunded to users’ original funding accounts without requiring any action from participants.

The exchange also announced additional compensation for eligible users, offering a reward calculated using a 10% annual percentage rate over a fixed four-day period. The compensation will be credited automatically.

Bitget reported a similar situation, stating that despite efforts by the xStocks team to secure shares, the anticipated allocation was ultimately unavailable. Binance, Bitget and Bybit subsequently confirmed the cancellation of their respective campaigns and pledged full refunds to affected participants.

Binance co-founder Changpeng Zhao (CZ) commented on the outcome, stating: “Protect users when things don’t go as planned.”

Participation in the IPO access programs also involved additional costs. Kraken applied a 5% spread to the final share price at allocation, while Binance disclosed a 5% underwriting fee above the indicative 135 USDC offering price.

Underwriters Retained Final Control Over Share Distribution

Kraken emphasized that exchanges were not responsible for determining final allocations. According to the platform, underwriters control the distribution process and may allocate shares using various methods, including pro-rata distribution, random selection, tiered structures, or relationship-based criteria.

As a result, investors can receive partial fills or no allocation at all when demand substantially exceeds supply.

The scale of the oversubscription became evident as SpaceX sold approximately 555.6 million shares at $135 each during the offering. The transaction ranks among the largest IPOs ever completed and generated intense competition for available shares.

Real estate investor Grant Cardone highlighted the level of demand, stating that he attempted to purchase 8,000 SpaceX shares but received only 1,000 shares through the allocation process.

The allocation shortfall underscores the challenges facing tokenized IPO access platforms as they seek to distribute limited public-offering shares to a rapidly growing base of retail crypto investors. With refunds now being processed across multiple exchanges, affected users are awaiting compensation payments and the return of subscription funds while exchanges continue to clarify allocation outcomes.