Chia Network’s CEO Gene Hoffman Confirms IPO Is Still at Play

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The Chia (XCH) blockchain network, which stands out from the competition with its unique Proof-of-space-and-time (PoST) consensus mechanism, is working towards getting listed on prominent stock exchanges via an Initial Public Offering (IPO). As reported at a conference organized by law firm Brown Rudnick in Manhattan, Chia Network’s CEO, Gene Hoffman, submitted an amended S-1 form confidentially to the US Securities and Exchange Commission (SEC) towards the end of March 2024.

Significantly, Chia Network applied for an initial public offering (IPO) with the US Securities and Exchange Commission (SEC) in the first quarter of 2023. However, due to the financial turbulence caused by Credit Suisse’s collapse, which served as the primary underwriter, Chia Network postponed its IPO plans. Additionally, during the crypto market downturn, Chia Network was compelled to let go of 26 employees from a team of 70.

Simultaneously, Chia’s Hoffman has signaled that the business will keep a close eye on market trends to determine the most opportune moment. The corporation might encounter regulatory hurdles in the future as the US Securities and Exchange Commission (SEC) plans to categorize many altcoins under securities regulations.

Chia Project and Market Outlook

The Chia team consistently emphasizes that they have not sold any XCH tokens to finance their projects. Instead, they have secured investments from notable web3 backers including Andreessen Horowitz, Richmond Global Ventures, Naval Ravikant, Slow Ventures, and Galaxy Digital, among others.

In May 2021, Chia Network garnered a total of $61 million from named venture capitalists during their Series D financing. Earlier, the Chia project had completed its seed funding in 2018 and follow-up venturing in 2020.

Based on current market information, the price of XCH has decreased approximately 20% over the last week and is now hovering around $30.36. With a fully diluted value (FDV) of roughly $948 million and a daily trading volume of approximately $23.4 million as of Friday, this lesser-known altcoin falls into the small-cap category.

The Chia initiative expands its reach into emerging markets like the Decentralized Physical Infrastructure Network (DePIN), and there’s growing curiosity among institutional investors regarding tokenizing real-world assets.

Currently, Hoffman announced that the Chia network is planning to launch a connection for bringing in USDC, a stablecoin tied to the US dollar and managed by Circle Internet Financial.

Bigger Picture

In the United States, the crypto market has experienced notable expansion following the green light for trading Spot Bitcoin ETFs. The Securities and Exchange Commission (SEC) is now facing mounting expectations to allow Spot Ethereum ETFs trading by next month.

Despite the argument by the agency that Ethereum and many other altcoins are investment contracts according to the Howey test, making them subject to securities law, the US Congress is currently pushing for clear-cut crypto regulations prior to the upcoming elections.

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2024-04-19 14:00