Prior to its mainnet launch, Chia Network, a developer of blockchain and “smart transaction” platform, was in discussions with investors to secure additional funding, according to a note to investors, seen by Cryptonews.com
We opened discussions with existing and new sources to secure additional funding after the launch of our mainnet, “said the February note, adding that” our operating lead at our current burning rate is approximately 5.7 months.
The mainnet was launched in March this year.
“As with any related corporate development, we will formally issue a press release to fully disclose any and all relevant information,” said the company when contacted for comments.
According to his white paper, dated February 10, the company raised approximately $ 16 million in financing through SAFE agreements (simple contract for future actions), with the last round of $ 5 million concluded in August 2020. “No investor was promised chia in return for your investment, ”he said, while some investors have redemption rights that would be denominated in chia, at the price of chia at the time, if the company did not list its equity for public trading as planned.
The company is supported by the power VC Andreessen Horowitz , Galaxy Investment Group , dcm , true ventures and others. Cypherpunk Holdings ‘, Which is supported and led by Cryptonews.com founder Antanas“ Tony ”Guoga, investment in Chia is self-reported at $ 300,000 in convertible notes.
No shareholder is able to own more than 50% of the company, according to the white paper, and none individual investor or fund will hold more than 10% of the outstanding shares of the company on a converted and combined basis. Investors as a group hold approximately 35.1% of the outstanding shares on a converted basis, and the founder of the project, Bram Cohen, who is also the inventor of BitTorrent, the inventor gets approximately 47.4%, which combines his founder’s equity and his subsequent investment money in an INSURANCE on a converted basis .
In addition, in the white paper, the company said that “it has always considered an eventual public offering or listing of its assets as a component of our product and business strategy”.
Meanwhile, its native token, which is described as “green money for a digital world” on an “ecological blockchain”, sizzle (XCH), started to be traded on the Exchange today Gate.io , MXC.COM and Bibox .
At 17:29 UTC, it trades at $ 1,786, compared to $ 1,596, or the oldest price available at Coinmarketcap.com. The turnover reached US $ 9.7 million.
A little about Chia
Chia Network uses the model called “Evidence of space and time”, as well as an intelligent transaction chain programming language called “Chialisp”.
“Instead of using specialized computing resources that consume a lot of energy, Chia relies on storage space along with the additional time variable (through a“ verifiable delay function ”or“ VDF) to ensure the integrity and security of the blockchain . A chia farm will spend a few CPU cycles to create “plots” on hard drives, but then use the disk space energy efficiency feature over the next few years to participate in the consensus mechanism that checks for new blocks on the Chia blockchain, “They said, adding that chia is created as a reward for chia“ farmers ”.
The company said it expects its blockchain to be used in a range of transactions, including international payments, issuing financial assets and issuing stablecoin, while planning to sell software service and support for open source blockchain and smart transaction software to governments. , financial institutions, corporations and large buyers and sellers of storage.