Binance Cancels SpaceX IPO Allocations Due To Stock Shortage

Cryptocurrency exchange Binance has canceled a planned allocation of tokenized SpaceX (NASDAQ: $SPCX) stock due to a shortage of available shares.

Binance had hoped to provide investors with a tokenized version of SpaceX shares at the initial public offering (IPO) price of $135 U.S. per share.

Instead, Binance is having to issue refunds to its customers after failing to secure enough shares to fulfill the orders.

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Binance isn't alone. Other crypto exchanges, including Bybit and Bitget, found themselves in the same situation and unable to deliver on promises of tokenized SpaceX stock.

On June 12, Binance canceled its Binance Wallet SPCXx IPO campaign, citing "circumstances outside of our control."

SpaceX went public on the Nasdaq (NASDAQ: $NDAQ) exchange at noon on June 12 under the ticker symbol "SPCX." The shares began trading at $150 U.S., 11% above the IPO price.

According to media reports, demand for SpaceX stock at the IPO price was unprecedented. By some measures, there were four times as many orders for SpaceX stock as shares available.

SpaceX raised $75 billion U.S. from the share sale at a valuation of $1.77 trillion U.S., making it the biggest IPO in history.

SpaceX founder Elon Musk saw his net worth jump to $1.05 trillion U.S. due to the IPO, making him history's first trillionaire.

Crypto exchanges such as Binance were not alone in being unable to meet customer demand for SpaceX stock.

Many traditional brokers set-up lottery systems and share restrictions to cope with the overwhelming demand for SPCX stock.

SPCX stock was heading into the close of trading on June 12 with its shares changing hands at $164 U.S. each.