Chia Network Aims for Major Stock Exchange Listing
Chia (XCH), a layer one blockchain that sets itself apart with its unique Proof-of-space-and-time (PoST) consensus mechanism, is pursuing a listing on major stock exchanges via an Initial Public Offering (IPO). Gene Hoffman, the CEO of Chia Network, revealed during a conference organized by the law firm Brown Rudnick in Manhattan that the company submitted a revised S-1 filing to the United States Securities and Exchange Commission (SEC) at the close of March 2024. This marks a continuation of Chia’s IPO journey, as the company had initially filed for this offering in the first quarter of 2023 but postponed the plans due to adverse financial conditions triggered by the downfall of Credit Suisse, which was its primary underwriter. In a challenging crypto bear market, Chia also had to downsize its workforce, letting go of 26 employees from a total of 70, despite receiving support from prominent web3 investors. Hoffman has noted that the company will keep a close watch on market dynamics to select the optimal time for its IPO. As the SEC is expected to classify many altcoins as securities, regulatory hurdles may lie ahead for the company.
Chia Project’s Financial Backing and Market Position
The Chia project team has consistently emphasized that they have not sold any XCH tokens to finance their initiatives. They enjoy the backing of notable web3 investors such as Andreessen Horowitz, Richmond Global Ventures, Naval Ravikant, Slow Ventures, and Galaxy Digital. In May 2021, Chia Network successfully secured $61 million in its Series D funding round from these venture capitalists. Earlier, they completed seed and venture funding rounds in 2018 and 2020, respectively. Recent market analysis indicates that the price of XCH has experienced a decline of approximately 20% over the past week, currently trading around $30.36. The small-cap altcoin possesses a fully diluted valuation (FDV) nearing $948 million, along with a daily trading volume of about $23.4 million as of Friday. The Chia project is diversifying its focus into emerging sectors, including the Decentralized Physical Infrastructure Network (DePIN), and is seeing a growing interest from institutional investors in the tokenization of real-world assets. Hoffman stated that the Chia network plans to launch a bridge to facilitate the onboarding of USDC, a stablecoin pegged to the US dollar and issued by Circle Internet Financial.
The Broader Landscape of Cryptocurrency Regulations
The cryptocurrency market in the United States has experienced notable expansion, particularly following the recent approval of spot Bitcoin ETFs. The SEC is currently under pressure to greenlight spot Ethereum ETFs by next month. Nonetheless, the agency maintains that Ethereum and many altcoins qualify as investment contracts under the Howey test, thereby falling under securities regulations. Concurrently, the US Congress is striving to establish clear regulations for cryptocurrencies ahead of the forthcoming general elections.
Disclaimer
Coinspeaker is dedicated to delivering impartial and transparent reporting. This article is intended to provide timely and accurate information and should not be construed as financial or investment advice. Given the volatility of market conditions, we recommend verifying information independently and consulting with a professional before making any investment decisions based on this content.
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