SpaceX shares crashed below the $135 IPO price, wiping out $1 trillion since June. A scrubbed Starship launch and upcoming investor lockups triggered the selloff.
It didn’t vanish. The early investors got their money and the naive buyers left holding their empty bags.
This is what they call exit liquidity.
Exit liquidity refers to investors who buy assets at inflated prices, enabling earlier investors to sell at a profit.
These later investors often incur losses as asset values decline.
It is very common in crypto and in volatile tech stocks.
It didn’t vanish. The early investors got their money and the naive buyers left holding their empty bags.
This is what they call exit liquidity.
It is very common in crypto and in volatile tech stocks.
They also got it on the NASDAQ so if you have an index fund that follows that you bought into it.
Early investors are still in their lock in period.
A lot of people really dont understand this.
SpaceX got the money. Its on their balance sheet.
Everyone who bought at $135 IPO price was giving money to SpaceX.
Everyone since then is just trading shares between each other.
The real shitshow starts once insiders can sell, until that happens we wont really know what price the market will settle at.
https://www.secform4.com/insider-trading/1181412.htm
https://www.secform4.com/filings/1181412/0001628280-26-044069.htm
This is mainly just showing a lot of option conversions / actions that happened because of the merger / IPO.
There’s a small sale on the first form in March, and the 2nd form in April