Chia Network Faces IPO Setback, Lays Off 26 Workers – Bear Market Woes Continue?
The Chia Network, a blockchain-based storage network founded by Bram Cohen, the creator of BitTorrent, has faced a major setback with a failed initial public offering (IPO) attempt. On top of the failed IPO, the company has also laid off 26 employees due to the bear market woes in the crypto sector.
The planned IPO had been scheduled for late April. However, the timing could not have worse as market conditions had deteriorated significantly due to the coronavirus pandemic. Subsequently, the IPO offer was withdrawn following a failing of reaching its targeted funding level.
As a result, Chia announced layoffs of 26 staff members and affiliates in an effort to remain financially stable. The network stated the termination decisions were made “after carefully considering all options” so that the network could “remain focused on its mission to create a more secure and democratic monetary system.”
The network has laid out a six month plan that will allow it to start new operations on a leaner organizational structure, one that should their vision of “building the trust layer of the Web, and establishing a new global financial infrastructure.”
The bear market in the crypto sector has taken a toll on many digital currency and blockchain-related businesses. This latest setback for Chia emphasizes the ongoing struggles that such businesses face. In particular, small companies may find navigating the current turbulent market difficult.