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Chia Network confidentially filed an amended S-1 form with the US Securities and Exchange Commission at the end of March 2024.
Chia (XCH) network, a layer one (L1) blockchain that differentiates itself from the park through its Proof-of-space-and-time (PoST) consensus mechanism, is still aspiring to be listed on major stock exchanges through an Initial Public Offering (IPO). According to Chia Network’s CEO Gene Hoffman, during a conference hosted by law firm Brown Rudnick in Manhattan, the company confidentially filed an amended S-1 form with the United States Securities and Exchange Commission (SEC) at the end of March 2024.
Notably, Chia Network initially filed for an IPO with the US SEC during the first quarter of 2023. However, the company ended up delaying the IPO bid following the financial headwinds caused by the collapse of Credit Suisse, which was the main underwriter. Furthermore, Chia network was forced to lay off 26 of its staff members out of 70 at the height of the crypto bear market despite backing from major web3 investors.
Meanwhile, Chia’s Hoffman has indicated that the company will continue to monitor the market conditions to ensure the right timing. The company could be facing regulatory challenges ahead as the US SEC intends to classify most of the altcoins under securities laws.
Chia Project and Market Outlook
The team at the Chia project has repeatedly reiterated that it has never sold a single XCH token to fund its projects. The company is backed by legendary web3 investors such as Andreessen Horowitz, Richmond Global Ventures, Naval Ravikant, Slow Ventures, and Galaxy Digital, among others.
In May 2021, Chia Network raised a total of $61 million from the above-mentioned venture capitalists in its Series D funding round. Previously, the Chia project conducted its seed funding round and venture round in 2018 and 2020 respectively.
According to the latest market data, XCH price has dropped around 20 percent in the past week to trade at about $30.36. The small-cap altcoin has a fully diluted valuation (FDV) of about $948 million and a daily trading volume of around $23.4 million as of Friday.
The Chia project is highly diversified into emerging markets such as the Decentralized Physical Infrastructure Network (DePIN). Furthermore, more institutional investors are interested in the tokenization of real-world assets.
Already, Hoffman said that the Chia network is working on rolling out a bridge to onboard USDC, a stablecoin backed by the US dollar and issued by Circle Internet Financial.
Bigger Picture
The cryptocurrency market in the United States has undergone significant growth with the recent approval of spot Bitcoin ETFs. Already, the US SEC is under pressure to approve trading of spot Ethereum ETFs by next month.
However, the agency has continued to argue that Ethereum and most of the altcoins constitute investment contracts under the Howey test and, thus fall under the securities law. Meanwhile, the US Congress is working to enact clear crypto regulations before the upcoming general elections.
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