BlockBeats news, June 7: Former Goldman Sachs analyst Dom Kwok expressed strong caution regarding the upcoming SpaceX IPO. He noted several coincidences occurring in the week prior to the IPO:
The U.S. PDT (Pattern Day Trader) rule has been eliminated, allowing retail traders to engage in day trading without being subject to the $25,000 minimum account balance requirement;
Fidelity has lowered the minimum account threshold for participation in SpaceX's IPO from $500,000 to $2,000;
The underwriting bank announced that during the IPO, retail investors will be allocated up to 30% of SPCX shares, compared to the usual 5%.
Dom Kwok stated outright that this is “no coincidence—retail investors are being positioned as the exit liquidity for a $2 trillion IPO.” He will not participate in the investment but is instead holding off for now; he does not entirely dismiss SpaceX’s long-term value, but believes the current policy environment surrounding the IPO is extremely unfavorable for retail investors, and with all safeguards removed, the risks far outweigh the opportunities. He advises waiting and observing rather than chasing high entry prices.