trade.xyz Responds to SPCX Pre-IPO Contract Pricing Mechanism: Not Dependent on Market Cap or Total Share Data

BlockBeats News, June 10th, trade.xyz responded to the SpaceX Pre-IPO contract SPCX (IPOP) pricing mechanism, stating that the product is a price-based perpetual contract, tracking the market's expectation of SpaceX Class A common stock's individual share price, rather than the company's overall valuation. The total share capital and market value of the company are not part of the contract rules, oracle method, or future conversion mechanism.

Previously, some educational examples in the documentation had shown users how to derive theoretical stock prices based on their personal judgment of the company's market capitalization and total share capital. However, these examples were for illustrative purposes only and were not involved in actual pricing. As some users mistakenly thought that the platform used market capitalization or share capital data as the pricing basis, the relevant examples have now been removed from the documentation.

trade.xyz emphasized that whether it is SPCX or other XYZ markets, the platform will not use, publish, or rely on total share capital or market value as pricing parameters. Once SpaceX completes its IPO and there is sufficient public trading data in the market, SPCX is expected to switch to a standard external oracle pricing mechanism and gradually converge towards SpaceX's actual public market stock price.

BlockBeats Note: SpaceX's latest S-1A amended prospectus disclosed the updated true total share capital of 13.08 billion shares (about 1.2 billion shares more than previous market estimates, mainly from recent issuance/option exercises, etc.). With a roughly 10% increase in share capital, it means that under the same company valuation, the theoretical price per share needs to be adjusted downwards by about 10%. If not adjusted, the contract price will decouple from the actual fundamentals, making arbitrage or unfairness likely. Several CEXs chose to temporarily delist the SPCX Pre-IPO contract after this event, and they will relist it after repricing based on the new 13.08 billion shares.