Republic co-CEO Andrew Durgee on the launch of SpaceX token

Business Model & Regulatory Landscape - Republic launched a SpaceX token mirroring the performance of private shares, aiming to provide retail investors access to pre-IPO opportunities [1] - The company acknowledges active conversations with the SEC regarding the tokenization of private assets and operates within existing US structures [9] - Republic uses Reg CF, which has a $5 million limit for US retail, along with Reg D and Reg S exemptions to facilitate transactions [14] - The company emphasizes that it either possesses the underlying asset or has direct access to it before selling tokens [6][14] Risk & Compliance - A key risk involves potential SEC disapproval of tokenizing foreign assets for non-accredited investors, though Republic aims to avoid this by filing Form C and awaiting approval before distributions [10][11] - Republic argues that the existing accreditation system, designed to protect consumers, is outdated and limits access to investment opportunities [7] - The company limits individual investment in the SpaceX offering to a maximum of $5,000 [17] Revenue & Fees - Republic's primary revenue source will be from secondary trading on its digital asset trading system (ATS) [18][19] - Currently, there are no direct fees for purchasing the tokens, potentially offering a more favorable deal compared to traditional platforms [19][20] Market Perspective - The company differentiates its approach from SPACs, highlighting the risk of forward-looking statements and overconfidence in public markets, while emphasizing the inherent risks in private markets [22][23][24] - Republic positions its offering as a way to provide access to opportunities previously limited to accredited investors, albeit in a limited capacity [17]