Blockchain project Chia applied to the SEC for an IPO

Blockchain project Chia applied to the SEC for an IPO

Author: Robert Strickland (crypto expert)
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Blockchain project Chia applied to the SEC for an IPO
Blockchain project Chia has applied to the U.S. regulator (SEC) for an IPO
Project XCH token rises 13% after the announcement that the company behind the green blockchain intends to conduct a public offering

Blockchain project Chia Network has filed with the U.S. Securities and Exchange Commission (SEC) for a public initial public offering (IPO).

The Chia Network blockchain was created by BitTorrent protocol founder Bram Cohen. In his opinion, bitcoin and other cryptocurrencies use too much electricity to mine on video cards or special devices.

That's why Chia cryptocurrency mining takes place on regular computer hard drives and SSD drives. This is much less energy intensive than mining cryptocurrencies such as Bitcoin.

The idea of green blockchain was immediately incorporated into the project - Whitepaper in the Chia network is called Greenpaper. The name of the project also speaks for itself: the seeds of chia (chia), or the Spanish sage, are so valuable and useful that the Aztecs used them as currency. Chia coins seem to "grow" in free space on users' hard drives, like seeds, and "give a harvest" - rewarding the miner (farmer) again in Chia coins.

In the spring of 2021, during the hype surrounding the coin, the high demand for hard drives provoked a sharp increase in their prices at retailers, similar to what happened with graphics cards suitable for mining. In Hong Kong, the average cost of driving has tripled.

After launching in April 2021, Chia Network President Gene Hoffman announced plans for an IPO by the end of that year. The company then raised $61 million from a group of investors including Richmond Global Ventures and Andreessen Horowitz. During the investment round, the project was valued at $500 million.

However, in May 2021, analysts estimated that mining Chia cryptocurrency on a 512GB solid-state drive (SSD) could take out the device in just 40 days. The average consumer's 512GB SSD typically lasts the device for five years of use. Other drives have also quickly fallen into disrepair after Chia mining. It proved unprofitable.

Miners began selling off equipment, and by September 2021, the price of a Chia coin (XCH), which had reached $1,64,000 four months earlier, had dropped below $400. By February 2022 it was down to $80, and during the "crypto-winter," the coin was trading at $30.

The coin's price rose 13% within an hour, to $45, according to CoinGecko. On April 14, Chia has a market capitalization of $306 million and daily trading volumes of $8.4 million.

 

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