Binance cancels SpaceX IPO campaign as allocation chaos hits

Binance has canceled its SpaceX IPO campaign and announced full refunds after allocation issues disrupted one of the most anticipated tokenized stock offerings tied to the record-breaking public debut.

According to a June 12 announcement, Binance has canceled its SpaceX IPO subscription campaign due to circumstances outside its control and will return all USDC contributed by participating users.

The decision follows similar action from crypto exchange Bybit, which disclosed that it failed to receive any allocations after xStocks was unable to deliver the underlying assets associated with the offering.

Participating Binance users will also receive a share of $1 million worth of SpaceX bStocks tokens as compensation. The exchange said the rewards will be credited by June 18. Binance did not disclose whether it encountered the same allocation issues reported by Bybit or whether any SpaceX-linked shares were ultimately received from xStocks.

The disruption comes after Binance Wallet’s SpaceX IPO campaign attracted approximately $557 million in subscriptions, underscoring the intense demand generated by the aerospace company’s public listing.

Demand for SpaceX shares remains exceptionally strong

Elsewhere in the market, Bybit confirmed that all subscription funds would be returned to users’ original funding accounts after receiving no allocations from the offering.

The exchange stated that eligible participants would also receive an additional reward calculated using a 10% annual percentage rate over a fixed four-day period.

Interest in the IPO remained elevated throughout the allocation process. Investor orders exceeded $350 billion before trading began, while Bybit noted that the offering was oversubscribed by more than four times.

After pricing its initial public offering at $135 per share, SpaceX opened trading on Nasdaq at $150 and climbed as high as $173.22 during its first trading sessions. As reported by crypto.news, the rally pushed the company’s valuation above $2 trillion after it entered public markets with an initial valuation of roughly $1.77 trillion.

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.

Tokenized stock activity continues despite allocation setbacks

Although some market participants had 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.

Commenting on Binance’s decision, founder Changpeng “CZ” Zhao said in an X post, “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, market participants are closely watching whether tokenized equity products can maintain momentum after the initial excitement surrounding the historic SpaceX debut.