SpaceX is one of the largest private aerospace manufacturers with a valuation of over $31B in 2019. Now, long-term believers in the company can purchase shares as tokens through a secondary market. UPSX is unveiling its whitelist where users can sign up to be a part of this new token offering which is pegged to SpaceX shares.
It should be noted, however, that USPX has no relationship with SpaceX directly. They are merely purchasing shares and tokenizing them. However, because SpaceX shares are restricted securities and cannot be traded on public exchanges, UPSX aims to expand liquidity by offering these tokens on secondary markets. In effect, they are bringing SpaceX shares to a greater number of people.
Ambisafe is launching a project which will purchase SpaceX shares and then tokenize them to be traded on a secondary market. Ambisafe’s partner, US Capital Global, will be signing a contract creating the fund which will allow for profit-sharing. The shares are then recreated on-chain as security tokens. They will be traded on Orderbook and other trading platforms.
Once SpaceX goes public, the equity fund will sell the underlying shares and all token holders will receive the proceeds as a payment.
Although the purported goal of UPSX is to ‘expand liquidity’ and make SpaceX shares available to more markets, there are some concerns. The UPSX token itself, for example, has no real underlying value other than merely being a tokenized copy of an already-existing stock. On top of this, there are fees and other costs associated with each UPSX token which means that token holders will not receive the same financial returns as they would if they were holding SpaceX shares.
UPSX, therefore, is not bringing anything new to the table other than perhaps allowing a new pool of investors to put their money into SpaceX stock, for a fee.
Because this is not an investment into a portfolio or fund outside of a single company’s shares, it may not be all that enticing for investors. The financial returns are, of course, most realized when one actually holds SpaceX shares, so why not just buy the shares themselves and skip out on UPSX tokens altogether?
However, for those investors who have been looking for a way to invest in SpaceX and couldn’t thus far, UPSX tokens may be worth looking into.