Chia, a cryptocurrency project launched in 2018 that uses hard drive storage for its consensus mechanism, is planning an initial public offering (IPO) this year, according to its COO Gene Hoffman. Chia Network Inc., founded by BitTorrent creator Bram Cohen, recently secured a funding round of over $60 million, valuing the company at $500 million.
Funding and Backers
The round was led by Richmond Global Ventures and Andreessen Horowitz, with participation from Breyer Capital, Slow Ventures, True Ventures, Cygni Capital, Naval Ravikant, Collab+Currency, and DHVC. Hoffman stated the funds will be used to hire talent and promote Chia as an alternative to major coins like bitcoin.
'Our goal has always been to go public relatively quickly as that will significantly clarify our regulatory environment and allow customers to use the currency to hedge public market volatility,' Hoffman commented. The successful funding round has boosted confidence in the IPO plan.
Green or Not? The Hard Drive Debate
Chia uses 'Proof-of-Time-and-Space,' relying on hard drive space rather than computational power. This makes it far more energy-efficient than Bitcoin's proof-of-work, earning it the label of a 'green bitcoin substitute.' However, critics point out that the intensive use causes hard drives to malfunction faster, generating substantial electronic waste. Despite this, supporters believe Bram Cohen's track record with BitTorrent lends credibility, positioning Chia as a potential top cryptocurrency. The mainnet launched in March 2021, and a successful IPO would mark a milestone for crypto companies seeking regulatory clarity and public market access.