Whether it’s xStocks suddenly deciding to swallow up retail investors’ shares, upstream underwriters backing out, or SpaceX executives stepping in to adjust the allocation (rumor has it Elon personally got involved...) This whole situation once again highlights a harsh reality: financial refugees don’t get a seat at Wall Street’s table. The power to make the rules lies with upstream institutions, while retail investors are stuck at the very bottom of the financial food chain. Here’s the impossible trinity of the primary market, where all three can’t coexist at the same time: Scarce assets, equal access, full allocation ◦ If scarce assets are open to equal access, full allocation is impossible. For example, with retail investors in crypto trying to get in on SpaceX, if there’s a risk of losses, it’ll be passed to retail investors; if profits are guaranteed, it won’t be our turn. ◦ If scarce assets can be fully allocated, there must be selection and connections involved. Higher-priority institutions/channels will take the real SpaceX shares first. ◦ If an opportunity offers both equal access and full allocation, it’s probably not scarce anymore—like many real estate projects in various cities or the everyday financial products we come across. The SpaceX IPO mishap partly reflects the inefficiency and excessive layers of traditional finance, which lead to losses along the way. Hopefully, in the future, more high-quality assets can be issued in a ‘code is law’ environment, where the cost of enforcement is much lower.