Chia coin is set to go public
Chia network has declared that the company is ready to go public. Gene Hoffman, the company’s president, explained that a merger with a special purpose acquisition company (SPAC) or listing via an initial public offering (IPO) might be the vehicle by which the company can gain public financing.
Hoffman disclosed in an interview with Fortune that the need for the company to go public has been a move for some time to radically simplify its regulatory framework and, in contrast to other monies, permit customers to utilize currency to hedge public market volatility. The CEO further stressed that the network prides itself on being environmentally friendly and claims its processes use less energy than conventional mining.
The current price of the coin depicts that by 2023, the coin will hit a high rate of $136; by 2024, it will have reached approximately $232, and in 2025, it will skyrocket to $338.
Towards the firm’s kickoff, it raised roughly $76 million (£56.95 million), of which $65 million came from a series D fundraising in May 2021, sponsored by Richmond Global Ventures, Naval Ravikant, Slow Ventures, and Andreessen Horowitz. Key takeaway from Chia coin
• Chia is set to go public as part of its product strategy. • The company has raised roughly $76 million (£56.95 million), of which $65 million came from a series D fundraising in May 2021. • The coin might become the largest in the world with its proof of space strategy.
Chia coin challenges
The recent increase in the sell-off of publicly traded crypto companies might pose a significant challenge to an effective kick-off for the company. Matt Kenedy, a senior strategist with the IPO research firm Renaissance Capital, disclosed that all firms find it challenging to go public. Further, he expressed concern for the company that despite having the backing of reputable investors like Andreessen and Greylock, the company is currently battling a declining market price for its currency, which is less well-known than Bitcoin and Ethereum.
What is different about Chia?
This blockchain network is different from that of Bitcoin and Ethereum in that it produces currency using computer hard drive storage power and a consensus technique called proof of time and space. According to Hoffman, the network currently has about 225,000 nodes worldwide, allowing effective data sharing and storage.
The SECs stance
Gary Gensler, the head of the SEC, has argued that regulating cryptocurrencies is like the Wild West. The asset class, according to Gensler, is plagued with fraud, scams, and misuse in some instances. In compliance with the US Securities and Exchange Commission rules (SEC) directive, Chia has mandated that all its operations be made clear to the regulatory body, the Commodity Futures Trading Commission (CFTC), to avoid similar pitfalls of other crypto projects before them.