The blockchain firm Chia Network, founded by popular torrent-inventor Bram Cohen, has filed a confidential draft registration with the U.S. Securities and Exchange Commission (SEC) for a proposed Initial Public Offering (IPO). No further details were given by Chia Network regarding the size or price range of the IPO.

The ambition to launch an IPO goes back to the bull run of 2021 when the firm reportedly raised $61 million in Series D funding. Led by investment powers Andreessen Horowitz and Richmond Global Ventures, the funding raised the blockchain firm’s valuation to a reported $500 million. At the time of the funding, the firm’s Chief Operating Officer (now CEO) Gene Hoffman, hinted that the firm was on an “accelerated timeline” to an IPO.

The news has garnered lukewarm response from Chia’s native token (XCH) as CoinMarketCap data indicates that the token is only up by a modest 2.59%, showing no upward movement since the announcement at 12:30 UTC on Friday.

For investors looking to explore the SEC-regulated crypto securities, SEC recently issued a statement of caution. The SEC noted that the decentralised and global nature of the crypto markets makes it vulnerable to illicit activities and fraud. Hence, it is important to carefully consider potential risks and reporting considerations associated with securities. The regulator illustrated that investors should be aware of any holding period, liquidity restrictions and reporting conditions.

Overall, it is important to be aware of the risks involved in crypto-related investments. Investors should do their due diligence to make well-informed decisions. As for Chia Network, the prospects of a public listing are highly promising and it will be interesting to see how the market responds once the details of the IPO are released.



Other News from Today