An investor's final frontier…

July 10, 2025 Now You Can Buy SpaceX — Should You? “The great lesson in microeconomics is to discriminate between when technology is going to help you and when it’s going to kill you.” ~ Charlie Munger Pre-IPO investing opens up a whole new risk-reward proposition for investors like us July 10, 2025 — Earlier this month, something extraordinary happened: Ordinary investors like you and me were offered the chance to buy “shares” in some of the fastest-growing private companies on Earth. I’m talking about pre-IPO companies like OpenAI, Anthropic, even SpaceX. But there’s a catch. These aren’t actual shares. They’re something called tokens. What’s going on here? Is this a breakthrough — or the next bubble? Let’s unpack it. Here’s What Just Happened Two major investment platforms made headlines last week: Robinhood started offering investors “tokenized shares” of OpenAI and SpaceX. Republic launched a new offering called “Mirror Tokens” that are tied to four major startups: OpenAI, Anthropic, Epic Games, and SpaceX. The pitch? These tokens give regular investors exposure to high-flying, pre-IPO companies—starting with as little as $50. How It Actually Works This isn’t like buying shares of Apple or Tesla in the stock market. Instead, these platforms are using a concept called tokenization: They take private shares, or derivatives tied to the private shares, and wrap them in a “token” that lives on the blockchain. (A blockchain is a digital ledger that records transactions in a secure, transparent way. It’s like a spreadsheet that everyone can see, but no one can change.) So you’re not buying actual equity in OpenAI or SpaceX. Instead, you’re buying a digital token that’s meant to track the performance of that equity. In Robinhood’s case, these tokens are available only to non-U.S. customers. In Republic’s case, the token sales are relying on SEC rules created by the JOBS Act — the regulations that have started opening up private investing to ordinary investors. Tokenization is innovative. It’s clever. But it also raises a lot of questions. Continued Below... [Urgent] Starlink Set For The Largest IPO In History? He turned PayPal from a tiny, off-the-radar startup… to a massive $64 billion giant. Then, he did it again with Tesla… which is up more than 19,500% since 2010. For perspective, that turns $100 invested into almost $20,000! And now, Elon could be set to do it for the third and final time… with what might be his biggest breakthrough yet. And for the first time ever, you have the rare chance to profit BEFORE the upcoming IPO. Click here now for the urgent details on this hidden play. The Risks Here are four risks you need to understand about tokenization. 1. You Might Not Own What You Think Sam Altman, the founder of CEO of OpenAI, said OpenAI didn’t authorize the sale of these tokens, and reminded the public that actual equity transfers require company approval. In fact, OpenAI publicly disavowed Robinhood’s offering. Translation? These tokens might not be backed by enforceable ownership rights. 2. Regulatory Loopholes Are Being Exploited Robinhood and Republic are threading the needle of U.S. securities law by targeting non-U.S. customers, or by using exemptions found in the JOBS Act. These strategies may be legal — but they also sidestep investor protections designed to keep retail investors safe. 3. Liquidity Isn’t Guaranteed Despite being built on the blockchain, these tokens can only be traded on pre-approved digital “wallets,” on limited exchanges, or on exchanges that are planned for the future, but don’t yet exist. This is a far cry from truly liquid markets. In other words, don’t invest any capital here that you might need for your rent, mortgage, or groceries. 4. Lack of Transparency The mechanics of pricing the tokens aren’t clear. Without this transparency, how will you know what your tokens are actually worth? Many investment platforms are steering clear. For example, as Public’s co-CEO Leif Abraham put it, “We decided not to offer tokenized startup shares because of the risk and ambiguity for retail investors.” Why It Still Matters Despite the risks and ambiguity, the demand is obvious — and growing: Individual investors are hungry for access to elite startups.As we explained last week, ordinary investors are starting to understand that there’s been a major shift: the biggest returns are now found in the private markets. The JOBS Act helps. These new regulations enable any investor, regardless of income or net worth, to invest in a large universe of private startups. But getting access to the fastest-growing pre-IPO companies — like OpenAI or SpaceX — is still gated by wealth, access, and accreditation laws. Tokenization could finally open up these markets to the masses. Even if the first generation of these products is imperfect, the underlying trend is real. It’s likely that regulators, institutions, and tech platforms will eventually find a middle ground — one that preserves investor protections while succeeding in broadening access. The Bottom Line This new wave of tokenized shares is exciting. It has the potential to break down walls and democratize access to pre-IPO giants. But at the moment, it’s also risky, opaque, and largely unregulated. So while we applaud the innovation, we urge caution — especially if you’re being offered something that seems too good to be true. Best Regards, Founder Crowdability.com and Grey Swan P.S. From Addison: Paid members, please join us for Grey Swan Live! with Matt Milner this Thursday, July 10 at 11 a.m. ET. We’ll introduce you to Matt more formally and discuss several of the private offerings we’ve emailed you about in the past several weeks. You may recall having read about Matt’s back door offerings for Elon Musk’s SpaceX, Starlink and xAi offerings? If you’re interested in learning more, please join us and ask questions. With both private credit and private equity markets gaining pop trend status in the investment markets, we’ll dig deeper into private placements. We’ll explore the new opportunities being offered to individual investors in this environment and lay bare the pitfalls and sand traps to avoid as the market opens up. Join Matt Milner, Andrew Packer and I on Grey Swan Live!  Thursday, July 10 at 11 a.m. ET. Your thoughts? Please send them here: addison@greyswanfraternity.com How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. (Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.) Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com

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