Chia Network has cut a third of its staff


Blockchain company Chia Network laid off 24 of its 70 employees. CoinDesk writes about this.

“Unfortunately, we will be losing some great people as we have gone through a difficult funding situation over the past few months,” explained project director Gene Hoffman.

According to him, the company also plans to resolve the issue by selling XCH tokens. According to the publication, within its structure, Chia has an unencumbered 2.6 million XCH (about $70 million at the exchange rate at the time of writing).

At the same time, the company was not sure how they could be classified SEC. However, in the context of the Ripple case, Hoffman admitted that “a carefully decentralized token could meet current standards for defining a digital good.”

As a result of the news, the XCH rate fell by 3.4%, according to CoinGecko. At the time of writing, the asset is trading near $26.20.

15-minute chart of XCH/USDT of the OKX exchange. Data: TradingView.

In April, Chia confidentially filed a Form S-1 filing with the U.S. Securities and Exchange Commission to conduct IPO. According to Hoffman, after losing Credit Suisse as a banking partner, the company found a new one in the person of a certain American institution.

Let us remind you that from May to September 2021, the coin’s rate fell by 85% and marked the beginning of massive sales of HDDs and SSDs used for its mining.

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