Former Goldman Sachs Analyst Questions Multiple Rule Changes Ahead of SpaceX IPO, Suggests Retail Investors Could Become "Bagholders"

BlockBeats News, June 7th - Former Goldman Sachs analyst Dom Kwok expressed strong caution regarding the upcoming SpaceX IPO. He pointed out several coincidences in the week leading up to the IPO:

- The U.S. PDT (Pattern Day Trading) rule was lifted, allowing retail traders to day trade freely without the previous minimum account balance of $25,000.

- Fidelity dramatically reduced the minimum account threshold to participate in the SpaceX IPO from $500,000 to $2,000.

- The underwriting banks announced that they would allocate up to 30% of the SPCX shares to retail investors during the IPO, whereas typically only 5% is allocated.

Dom Kwok stated unequivocally, "This is no coincidence; retail investors are getting ready to provide liquidity for a $2 trillion IPO." He mentioned that he would not be investing and would instead adopt a wait-and-see approach. While he did not completely dismiss SpaceX's long-term value, he believed that the current policy changes during the IPO window were extremely unfriendly to retail investors. The removal of guardrails signifies that the risks far outweigh the opportunities. He advised observing the situation rather than chasing the price at the current entry point.