eli5 tokenized stocks. other than pure speculation with no connection whatsoever to the performance of the company, what gives these value?

c-crypto-member

Republic launching Space X Mirror Token on Solana

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Republic, a leading alternative investment platform, Is launching mirror tokens of private US companies starting with Space X. A $50 minimum is required and it is targeted at US investors. 

The “Mirror Tokens” will be on the Solana blockchain and be tradable post launch. The documents imply you will share in any upside/appreciation of the private stock if it IPOs. There is a 1 year lock up on the tokens.

I’m intrigued as this seems like an easy way for non accredited investors to get exposure to private US companies. 

The waitlist is open and has over 3,000 pledges so far. 

Interesting note From their FAQ:

If I invest, am I now an owner of SpaceX?

No. If you invest, you’re buying a debt instrument (a “Note”) offered by RepublicX - you have no right whatsoever to equity in SpaceX by v

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https://republic.com/r-spacex

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0xF4fCDFDFeD9a1664B2e40Dc5BDA017e41723997a

Solving public goods value capture. | /impact | book.abundance.id

Supposedly upside at IPO….

https://farcaster.xyz/pichi/0x0865e849

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but is it fully backed by their stake or they're not offering 100% of the tokens to trade? (ie. fully supply != circulating token supply)

it all seems very sketchy to me. if I understand the logic (and I'm not sure I do) you're essentially trading against Robinhood (and/or Republic), and since they're offering the tokens they seem to think that they'll beat investors in this game

seems like this all may blow up in people's face. you have both Robinhood & Republic offering tokenized stocks of the same companies (so already 200% of the value).

presumably they need to take the reverse bet on these companies to meet their obligations to investors

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seems like this all may blow up in people's face. you have both Robinhood & Republic offering tokenized stocks of the same companies (so already 200% of the value).

presumably they need to take the reverse bet on these companies to meet their obligations to investors
https://farcaster.xyz/abundance/0x9329501d

For Republic you are buying into a Note which I assume is them tokenizing their own equity they purchased through the company. It’s definitely unique and pushing the envelopes of crowdfunding to a new level!

I see. if that's the case then it's a "safer" investment

seems the marketing obscures that bit tho, which can confuse investors (ie investors need to know exactly how much equity Republic has, or they're investing blindly)

Still feels super blind and buried in paperwork.

the valuation may be but for sure they know what % of the shares they own..

Their site is very vague on this. I assume it’s on purpose because private company valuations are hard.

it shouldn't be. If I tell you investing in my token gives you tokenized shares of SpaceX or whatever, the assumption is that the market cap of those tokens should match SpaceX's expect market value (and not, say 0.01% of that value)