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SpaceX Share Frenzy: Investors Must Beware Of Scams Offering Shares In $180 Billion Company

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Interest in investing in Elon Musk ‘s aerospace firm, SpaceX , has gotten so intense that it can be difficult to understand the facts through all the noise . The startup is privately held (shares are not on sale over an exchange). Its shareholders include financiers, company executives and staff.

It is believed that Tesla TSLA CEO Elon Musk owns a majority stake — between 40-50%. Private Share Sales Are Possible If you know any of these guys, they are allowed to sell you shares through SpaceX’s internal trading program. Also, there are platforms where private investors can buy shares these owners are willing to sell.

Rainmaker Securities is one such platform. According to Barron’s , it has already traded more than $4 billion in SpaceX shares. However, Rainmaker’s services are only available to accredited investors.

That means you have to hold a trading license or earn tons of money. These are likely scenarios for very few people. Therefore, it’s easier to say that SpaceX shares are not available for private investors.

Also Read: Can’t Buy Into SpaceX? Here’s How to Get A Piece Of The Rocket Launch Action Spin-Off Rumors But then came the rumors of an initial public offering (IPO). A frenzy of interest followed reports in mid-November that Musk was in talks to spin off SpaceX’s Starlink satellite subsidiary. Musk simply replied that these rumors were false and reiterated that an IPO would only happen once Starlink had achieved certain financial targets.

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. A similar thing happened during the second phase of the cryptocurrency rally when it seemed like a new coin was being offered every day. At the peak of the cryptocurrency frenzy in 2018, according to research by Satis Group , more than 80% of initial coin offerings were scams.

And now it appears the frenzy surrounding anything Musk- or SpaceX-related is drawing in the scammers to take advantage of those who are desperate to get a slice of a company that has recently been valued — thanks to private sales of the shares — at more than $180 billion. “A common strategy among online scammers is to lure victims into a group chat with the promise of an investment opportunity. However, it’s all a scam to steal users’ money,” says Jordan Liles at Snopes, the fact-checking website, which has already noticed the upsurge in SpaceX scams.

The latest, seen by Benzinga staff and shared below, was posted on Facebook over the past couple of days. The content has now been removed by Facebook. So, be patient.

A Starlink IPO will likely happen. Some analysts estimate that it has already achieved the financial goals that Musk identified for Starlink as being IPO-ready. And in the meantime, Benzinga identified in an article earlier this week , alternative ways for investors to be a part of the growing U.

S. corporate space race. Now Read: Elon Musk Says Starlink IPO Discussions ‘False’ Following Report Of Spin Off Image: Shutterstock Loading.

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From: benzinga
URL: https://www.benzinga.com/markets/equities/23/12/36433159/spacex-share-frenzy-investors-must-beware-of-scams-offering-shares-in-180-billion-company

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