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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.
They also got it on the NASDAQ so if you have an index fund that follows that you bought into it.
I exited out of all American ETFs earlier this year so I'm feeling good about myself lol
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.
What's a typical lock in period?
Usually around 6 months, but they pulled some shenanigans to make it shorter somehow, but i dont really know the specifics in this case.
Hey, the orange pedophile is good at doing that too, with his stupid ass coins, and phone and anything really
It's a GOOD thing Illegal Immigrant Elon Musk FORCED YOU to Invest in this Company with your Retirement Accounts!
Capitalism working as expected..
A very interesting point.
Your retirement account has to follow some rules, for example to buy large ETFs. Large ETFs have to follow stock indexes. Stock indexes have to include "big" companies.
So when a big AND inflated company comes along, makes it into the index, and then deflates, you all are screwed automatically and by all the rules.
To prevent this, there were rules in place that stipulated that a reasonable time had to pass for a new company to enter the index after IPO. Strangely, they scrapped that rule just before this one...
No shit. A valution of 100x more than yearly revenue (never mind profits) should never have existed in the first place, and was most certainly a pump and dump.
Anyone who actually thought the stock price was going up from there was delusional.
And how SpaceX got into the NASDAQ is very corrupt. They fast tracked SpaceX's IPO by breaking their own rules but still applied the same old rules to any companies applying for IPO after SpaceX. The folks In NASDAQ must have gotten under the table financial incentive from Musk.
Hope both SpaceX keeps dropping and NASDAQ faces a class action for this obviously corruption.
The delusional people run the world these days, unfortunately.
Pretty sure it's conmen running the world, with the delusional propping them up
Not to worry I'm sure the trillion was mostly just from pleb 401ks.
That trillion doesn't exist. It didn't go anywhere.
It does exist and it was moved from poor people to the rich. As always.
In a way SpaceX did me a favor. I dumped my NASDAQ composite fund before they started carrying SpaceX. It's been on a downward trend ever since.
I knew I should have shorted it 😭
The market can stay irrational longer than you can stay solvent.
The stock hit $123 on Friday. It's still got a $1.6T market cap. I have no idea where they got that headline from.
Because the high was just over $200. They are talking from its peak.
I have no idea where they got that headline from.
The "IPO price" for institutions (banks, hedge funds, a tiny bit for retail brokers) was $135. It opened on the public market at $150-something.
Still perhaps more than the company is worth, but at this point an institution that fought to get in on the IPO would be down 23% (unless they dumped it, which plenty did).
Who could possibly have foreseen this! It's an utter mystery!
Typical of a lot of stock IPO. People just gonna do pump and dump at the beginning, whether they recover from this later is the challenge. It's the reason why i don't look at IPO anymore, i'm not as fast nor as rich as those career trader so it's high chance for me to lose money.
Wonderful. Keep going!
"vanishes" from the pockets of buyers into the pockets of the IPOers
Good. Choke on it, Elon.
Musk is already the person who lost the most wealth a while ago (biggest loser ever to have walked this earth). So now he beats his own record.
So every investor who had faith in SpaceX as a central supporting column of the USAs future in space was robbed of money by the greed of wall street and SpaceX executives?
And they probably didn't even say thank you for the opportunity.
What I find interesting about this is that everybody knew exactly what would happen, and then it happened. It's a perfect counterexample to the logic of "this system isn't perfect, but it's the best thing we have." It's just the rich and powerful using leveraging their wealth and power to become even more so, and under the current rules nobody can stop them.
Who could have seen that coming
A trillion vanishes and nobody knows if anyone made money from this......
Shame the SEC will not stomp on the neo-Nazi.
Yay
1 trillion to go!
It's a $60 share hasn't even unlocked for the employees to sell theirs yet so can only go down from here.
