SpaceX share SPCX sees trading volume triple on Gate after major unlock

On crypto exchange Gate, the trading volume of the SpaceX stock SPCX nearly triples in a short period to almost $700 million. This happens just before and after a major share unlock in which more than 911 million shares from early investors and employees are released to the market.

In brief:

• The trading volume of SPCX on Gate rises from $126 million to more than $360 million in the space of two days.
• More than 911 million SPCX shares are released after a pre-IPO lock-up, equivalent to 42.6% on top of the number of shares issued at the IPO.
• Despite the large release, SPCX closes the session up 6.14%.

Huge number of shares released

In a so-called unlock, shares that were previously not tradable are released. In this case, these are shares that SpaceX employees and early investors received or purchased before the IPO. With more than 911.5 million shares released, 42.6% more paper becomes available than was issued at the IPO itself. That is a substantial addition to the available supply on the market.

Yet the market response is positive. SPCX closes the trading day with a gain of 6.14%. That is striking, because this kind of large unlock normally creates downward pressure as existing holders can sell their shares. The price did experience a swing of about 38% and hit a low around $105 twice, which triggered an emotional reaction among some traders.

Crypto traders anticipate the unlock

On Gate, one of the crypto exchanges where stocks such as SPCX are tradeable, trading volume is already building in the days before the unlock. On 4 August, volume rises from $126 million to $332 million, and a day later it climbs further to more than $360 million. In total, that amounts to nearly $700 million in trading volume over just two days.

That suggests that some crypto investors who also trade stocks through such platforms are getting ahead of the expected market move. Whether this involves speculation on a price decline or, conversely, a rise after the unlock is not clear. What is clear is that the increased volatility of the stock is attracting traders who are active on crypto exchanges that offer traditional stocks.