Special purpose acquisition vehicles (SPACs) allow investors to redeem their shares at $10 if they dislike the company the SPAC acquires, thus democratizing the IPO process. However, public shareholders often suffer losses, achieving an average loss of 19.8% even as SPAC sponsors earn significant returns (113% average return). Despite their popularity, SPAC prices can become irrational, as seen with a SPAC that traded at $65 ahead of a merger with Lucid Motors. DAT SPACs targeting cryptocurrency companies, which should theoretically offer good value, have been trading around $11 per share, questioning their worth. In contrast, shell companies transitioning into digital asset firms have fared better, with substantial increases in share price post-merger. Investors have grown wary of paying premiums to NAV, indicating a change in sentiment regarding SPACs' valuations, regardless of their potential in the cryptocurrency space.

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