Republic has announced that tokens representing shares in SpaceX are now available for investors to participate in the offering.
Mirror Tokens, or tokenized securities offerings that represent shares in a private firm, are a new vertical for Republic. The platform announced the advent of its Mirror Tokens this past June, indicating its first offering was for Elon Musk’s space venture SpaceX. The tokens are created to mirror the value of SpaceX shares.
Initially, Republic indicated these digital assets would be offered under Reg CF, and thus open to retail investors, but it seems they have decided otherwise, as the offering is now being made available under Reg D 506c and for Accredited Investors only.
Another change is that these digital assets are now called rSPAX and structured as a Contingent Payout Note. These assets are designed to provide investors with a contractual right to receive a payout from the issuer from a qualifying redemption event, such as an IPO.
The offering under Reg CF was expected to have a cap of $5 million, but it is not immediately clear how many rSPAX tokens will be offered. These assets have a reference price of $275 with a minimum investment of $5o.
Republic also intends to allow secondary trading of these digital assets after a lock-up period. This includes INX Digital, a platform controlled by Republic.
As for SpaceX, it is probably the most successful private space firm in operation. As most successful private firms seek to remain private for as long as possible, thus avoiding excessive regulations impacting public firms, an offering like this on Republic should provide more investor access to a successful private firm. The last valuation of SpaceX was pegged at $350 billion.
While Mirror Tokens are a novel asset that leverages new technology to provide more access for smaller investors, it is emblematic of online investment platforms striving to offer more mature, and thus less risky, investment opportunities for their investors.
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