The Chia Network, a cryptocurrency startup, has run into a major setback with its planned initial public offering (IPO). The company had hoped to be traded publicly within the next few weeks, but the delay has caused it to lay off 26 workers.
The delay is being attributed to the bear market in crypto, as well as the current scrutiny of IPOs by the SEC and other regulatory bodies in the US. The company had originally planned for an IPO in March, but delays in approval from the SEC forced it to postpone until sometime in the summer.
The layoffs follow the expiration of the startup’s seed financing round, which had been extended until now in anticipation of the IPO. The layoffs are reportedly concentrated in its engineering and product departments, signaling a focus on cost-cutting as the company awaits approval from the SEC.
Chia Network continues to be optimistic about its prospects, stating that it has attracted strong interest from investors and that it expects to launch its IPO when regulatory obstacles have been cleared. But the news of layoffs is a sign that bear market woes are continuing to weigh on the industry.