Breaking: @joinrepublic offering to the public the investment opportunities of @SpaceX via the use of blockchains? This is done via tokenizing the private equity of @SpaceX in the form of a "mirror token" called $rSpaceX. The rSpaceX token, with a minimal entry point of $50 and a per-investor cap of $5,000, will be minted on @Solana. But note that this is not an official coin issuance by @elonmusk or @SpaceX itself. It’s a mere contractual note issued by RepublicX LLC, promising "potential returns" tied to @SpaceX’s share value increase if a liquidity event (e.g., IPO, acquisition) occurs. Hence, it does not grant equity or voting rights in @SpaceX, with the default being the counter-party risk. - The $rSpaceX token is subject to a 1-year lockup, after which it can be traded on the regulated INX platform. Actual returns depend on SpaceX’s future valuation when it goes public. - Legal Basis: this offering relies on the 2012 JOBS Act’s Regulation CF crowdfunding exemption, avoiding SEC registration. - @joinRepublic aims to expand this model to other high-value private companies like @OpenAI, @AnthropicAI, @figma, and @xAI. - Remark: investors have no shareholder rights in @SpaceX. The "potential upside" remains vague, raising questions about its feasibility. In fact this is not the first project trying to work on the concept of tokenizing private equity. @JarsyInc operating on the Arbitrum network also aims to democratize access to pre-IPO stocks of major companies like @SpaceX, @OpenAI, @Figure_robot, and others. There are 2 models: - Private Equity: @JarsyInc acquires shares from VCs or companies and sells them directly to users. Some previous offerings include @perplexity_ai ($85.17/share) and @databricks ($92.50/share), with @SpaceX and @Circle both sold out. - Private Equity Presale: Users pre-commit funds, which @JarsyInc uses to negotiate allocations with GPs or LPs. If unsuccessful, funds are refunded. Companies like @krakenfx, @Stripe, and @Ripple are featured, with transparent on-chain records. In short, @JarsyInc offers a convenient way for retail investors to access unlisted giants, though with various counter-party risks. Both tap into the growing trend of RWA tokenization, but their approaches differ: - Republic’s rSpaceX* focuses on a speculative "mirror token" model, relying on future liquidity events without direct equity, posing higher risk due to its dependency on Republic’s promises. - Jarsy provides a more tangible stake in pre-IPO shares, backed by negotiated allocations, though it too hinges on the team’s execution for settlement. I look forward to this growing opportunity as more and more investment institutes will explore ways to exit their private market deals according to their terms with LPs. More interesting things will come up, revolutionizing modern finance!