Layer-1 blockchain Chia, who uses its own custom-designed programming language – Chialisp, has confidentially applied for an Initial Public Offering (IPO) to go public.
In 2017, BitTorrent Creator- Bram Cohen created blockchain and started Chia Network in Delaware. Chia Network stated on Friday that the blockchain business had confidentially submitted a draft registration statement on Form S-10 to the United States Securities and Exchange Commission (SEC) for proposing the “IPO of its common stock.”
Following the press release, XCH, the native token of the Chia Network, surged more than 16.3% on Friday. Nevertheless, the XCH token is trading higher with 12.2% overnight gains while the current price is at the $46.28 mark.
According to Coinmarketcap, Chia is the 122nd-ranked cryptocurrency, while the Chia network has a total market capitalization of $326.2 million. A 355% increase in trading volume to $28.4 million suggests aggressive buying of the XCH token.
It seems the company hasn’t yet decided on the size or price range of its Initial Public offering. Chia may launch its IPO after the SEC completes its evaluation process, subject to market and other conditions.
Chia’s blockchain operates on the latest “proof of space and time” algorithm for validating transactions.
Chia Network has raised $61 million in funding in May 2021, according to CoinMarkCap data.
Similarly, Chia’s official website has already demonstrated its commitment to becoming a publicly traded firm on the NYSE or NASDAQ, as well as being subject to public reporting, which it falls under. Security Act of 1934.
As media outlet Bloomberg reported, Gene Hoffman, the CEO and President of Chia said “We believe the SEC is sincere in their desire for projects to come in and register, so here we are.”
In the context of the IPO, Hoffman stated, “We’re serious about compliance and transparency, and we’ve chosen this path because we believe it’s the right thing to do.”
“We are confident that XCH doesn’t constitute a security under Howey, and have proactively engaged with the SEC,” reads Chia’s blog post under the title ‘compliance’.
Also read: SEC to Hire Lawyers for Crypto Enforcement Division
