Chia Network Fires 30 Staff Members as It Prepares for US IPO
Blockchain and smart-contract platform Chia Network has laid off nearly 30 employees while making plans to go public in the US. The company cited the challenging funding environment caused by the Crypto Winter, industry skepticism, and banking crises as reasons for the layoffs. In addition, the underwriter for Chia Network’s IPO failed, creating further complications. Despite the setbacks, Chia Network remains committed to building sustainable teams and processes to drive enterprise adoption on its blockchain.
“The Crypto Winter, industry skepticism, and banking crises have created a challenging funding environment. We’ve cut costs across the org, scaled back budgets, and faced a black swan event of our underwriter failing.”
Commenters expressed sympathy for those affected by the layoffs but also suggested that Chia Network should expand into other markets instead of focusing solely on the US. Some commenters noted that over-hiring is not uncommon for software companies preparing for an IPO.
Further IPO Roadblocks
Chia Network, founded in 2017 by Bram Cohen, creator of BitTorrent, aims to develop an improved blockchain and smart transaction platform called Proof of Space and Time. The company filed with the US Securities and Exchange Commission (SEC) to initiate the IPO process. However, recent events, including the Credit Suisse crisis, may have delayed Chia Network’s listing. The company still has open positions available in engineering, business development, and general interest.
Chia Price Plummets
Chia Network’s native coin (XCH) experienced a significant price drop over the past 24 hours. XCH was down 14.1% to $23.77 at the time of writing. It has also declined by 12% over the past seven days and 19% over the past month. The coin reached an all-time high of $1,645 in May 2021 but has since fallen by 98%. Its market capitalization is $206.5 million, with a 24-hour trading volume of $29.37 million.
Hot Take: Chia Network Faces Challenges Ahead of IPO
Chia Network’s decision to lay off employees and the uncertainty surrounding its IPO highlight the difficulties faced by blockchain companies in the current market. The bearish crypto market, along with industry skepticism and banking crises, has made fundraising challenging for Chia Network. However, the company remains committed to its goal of driving enterprise adoption on its blockchain. As it navigates these obstacles, Chia Network may need to explore opportunities in international markets and provide more transparency to address concerns raised by commenters.
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