Chia’s $61 million round brings IPO plans closer whilst green cred moves interest
There is nothing quite like capturing the mood of the moment in order to influence the cryptocurrency markets.
Fashion and current trend has always been an important method of attracting an audience which seeks to get in on the latest lifestyle acoutrement, whether it be relating to clothes, watches or cars, however when it comes to cryptocurrency, being at the forefront of absolute leading edge of thought and ideology is absolutely paramount.
It is perhaps no surprise in that case that given the high profile social media-orientated flogging that some of the self-styled advocates for specific cryptocurrencies have dished out on the grounds of environmental responsibility, an entire network which claims to have green credentials at the very top of its list of innovative priorities is now very much in focus.
Although the Chia Network was launched some five years ago, it is now maturing to the extent that it is seeking to list it on an established stock exchange, which is very much a unique direction for an actual cryptocurrency denomination. The company’s coin, also called Chia, was launched just a few weeks ago and is creating a lot of interest in the market, with its value already at around $652 for one Chia coin.
Whilst no actual date is yet known for the controversial public listing of Chia Network, its founder, Gene Hoffman, is widely reported to be looking at listing the company on a public exchange this year, and has now got some very highbrow investors onboard, including Richmond Global Ventures, Andreessen Horowitz, Breyer Capital, Slow Ventures, True Ventures, Cygni Capital, Naval Ravikant, Collab+Currency, and DHVC who participated in the most recent round of funding amounting to $61 million.
Should Chia list, it will create a rare circumstance in which people will be able to invest in cryptocurrency without actually having to buy or trade any digital asset.
So, what’s the news here? Well, given the current dialog around potentially listing on a public stock exchange and its self-proclaimed ‘green’ credentials, today’s raising of series D funding has, according to the company itself brought its value up to around $500 million.
The company’s newly introduced coin, which is also called Chia, has been actually influencing the price of hard disks, due to the method by which coins are ‘farmed’, farming being a term used by Chia instead of mining.
Chia’s method of farming its coins is conducted via storage capacity, rather than graphics card usage as is the case with Bitcoin mining, and instead of using a proof-of-work system like many other cryptocurrencies, Chia requires what is known as proof-of-space-time to be farmed using hard disk drives and SSDs.
This method requires less processing than Bitcoin, positioning Chiacoin as a potentially greener cryptocurrency. It was devised by Bram Cohen, the same programmer who designed with the BitTorrent peer-to-peer network protocol around 20 years ago.
The green aspect is a hot potato at the moment, especially in the wake of meme currency proponent Elon Musk whose Twitter-based attack on Bitcoin centered around the perceived effect on the environment caused by high electricity consumption as a result of its GPU-based minin procedure which is based on the proof-of-work model which involves vast numbers of CPU cycles and hence electricity.
By contrast, Chiacoin farming requires much less processing and its proof-of-space-time consensus algorithm also uses a blockchain network. It involves a so-called Chia farmer or “prover” sending such a proof to a verifier, and the proof is that some amount of disk or SSD space is actually used to store specific data.
As a total tangent to the popular cryptocurrencies that have ridden a massive wave of volatility over the past few weeks, crashing after Elon Musk’s now famous – or infamous – tweet, then rebounding very soon afterwards, Chia has been climbing in value.
Just two weeks after its launch, at around the time of the Musk-induced flash crash, it was worth around $74 per coin, and now it’s at $652.
Nothing like a good bit of media feel-good, some green credentials and a forthcoming IPO to get the interest flowing.