This past week, 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.
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.
P.S. At Crowdability, we believe in safe, smart access to private startups.
We help individual investors get exposure to high-potential private companies — without relying on risky tokens or gray-market derivatives.
And yes, that includes exposure to companies like SpaceX.
To learn how you can invest safely in deals like SpaceX, click here »
Best Regards,
Founder
Crowdability.com
