What Is Binance’s SpaceX Pre-IPO Perpetual Contract and How Does It Work?

By
GBadmin
-
0
2
What Is Binance’s SpaceX Pre-IPO Perpetual Contract and How Does It Work?


Set as Google Preferred SourceFollow on Google News

TLDR

  • Binance launched perpetual futures contracts tied to SpaceX’s expected IPO valuation, settled in USDT
  • The product gives retail crypto traders access to pre-IPO speculation, previously limited to institutions
  • SpaceX confidentially filed for a US IPO, potentially seeking a valuation above $1.75 trillion
  • Traders on Polymarket give a 70% chance SpaceX reaches a $2 trillion market cap at launch
  • SpaceX holds 18,712 Bitcoin, more than Tesla, which would rank it seventh among public corporate Bitcoin holders

Binance, the world’s largest crypto exchange, has launched perpetual futures contracts linked to SpaceX’s expected valuation ahead of the company’s planned initial public offering. The product is called the SPCXUSDT Pre-IPO Perpetual Contract and is settled in Tether’s stablecoin USDT.

The contracts do not give traders ownership of SpaceX shares. Instead, they allow users to speculate on what the company might be worth when it eventually lists on a public stock exchange.

Pricing for the contracts will be based on publicly available information, including announced valuation ranges and IPO pricing data. Once SpaceX begins trading publicly, the contracts will shift to tracking the live share price.

What Binance Says About the Product

Shunyet Jan, Head of Spot and Derivatives at Binance, said the product is part of the exchange’s push to give retail traders access to investment opportunities that were previously only available to institutions and venture capital firms.

Jan described it as part of Binance’s broader goal to become a “financial super app.”

If an IPO is delayed or canceled, Binance says those contracts may be delisted and settled through a separate process.

Zuna

SpaceX IPO Details

SpaceX confidentially filed for an IPO with the US Securities and Exchange Commission in April. The company confirmed plans to sell shares to the public this week, with reports suggesting the listing could happen as early as June.

The company could seek a valuation above $1.75 trillion and raise as much as $75 billion. That would make it one of the largest IPOs in US history, surpassing Saudi Aramco’s $29 billion raise in 2019.

Traders on prediction platform Polymarket currently put a 70% probability on SpaceX reaching a $2 trillion market cap at launch.

SpaceX’s Bitcoin Holdings

An SEC filing this week revealed SpaceX holds 18,712 Bitcoin, bought at an average price of around $35,320 per coin. That puts SpaceX ahead of Tesla, which holds 11,509 Bitcoin.

If SpaceX were publicly traded today, it would rank seventh among public corporate Bitcoin holders. It would sit behind Bullish’s 24,300 Bitcoin and ahead of Coinbase’s 16,492 Bitcoin.

Binance’s launch follows similar moves from other crypto platforms. Bitget launched a SpaceX pre-IPO product called preSPAX in April. OKX, Crypto.com, and Hyperliquid have also introduced comparable pre-IPO trading products in recent weeks.

Tokenized equities platform xStocks also partnered with Fundrise in March to bring a fund holding private shares in SpaceX, Anthropic, and Databricks onchain.

SpaceX’s first quarter revenue was reported at $4.69 billion, with a net loss of more than $4.2 billion.

🚨 Our MAY Stock Picks Are Live!

A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.

Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.

Use coupon code Special50 for your exclusive discount!





Source link