Shares of Securitize, a BlackRock-backed tokenization company founded by former Telefónica executive Carlos Domingo, have fallen more than 40% from their debut-day high just five calendar days after the company went public through a merger with Cantor Equity Partners II, a special-purpose acquisition company tied to Cantor Fitzgerald.
- At first, the trade worked. Securitize shares traded as much as 16% higher in their New York Stock Exchange debut on July 2 and closed at $12.3, up 4.4%.
- But the pop didn't last long as Yahoo Finance data now shows that SECZ hit a high of $13.7 on July 2 before falling to $7.66 in early trading on July 8, a drop of about 44% from the debut-day high.
- This puts Securitize at around $1.24 billion market cap, below the SPAC deal's own $1.25 billion pre-money valuation.
Crypto researcher @diegoxyz noted in an X post that so far, "there is no major negative fundamental catalyst" behind the drop as the company hasn't published yet any earnings or anything else.
Diego
But Securitize has also found itself in a separate controversy. The company earlier filed a complaint in the U.S. District Court for the District of Delaware seeking a declaratory judgment that it doesn't infringe patents held by tZERO, a rival tokenized securities platform that has long claimed an early role in regulated digital securities.
- The dispute appears to center on Securitize's DS Protocol and Vault Registrar tools, which tZERO claimed may violate two patents covering compliance checks for security tokens and crypto account infrastructure.