Crypto is on fire right now. Binance’s CZ has successfully destroyed his longtime rival Sam Bankman-Fried and FTX, now BlockFi has suspended withdrawals from its platform because of the contagion spreading from the FTX destruction. But from what I can tell from the sidelines (at this point) Chia seems fine. Why is that?
From where I am standing its largely because Chia hasn’t really integrated with the rest of the cryptocurrency ecosystem. In days past that has been leveraged as a pretty hard criticism against the Chia team, by me and others. But now that seems like it is more a protection from systemic risk than a weakness of the platform. Not that having working Ledger support would have caused them any problems (hint, hint Chia team…) but the broader implications of being part of the “crypto ecosystem” are definitely turning sour.
The real risk here is if Chia Network Inc needs to do another round of investments. I would say the IPO is probably dead for the time being, regardless of what they say, because it would be silly to do a road show in this climate. But unless they have some revenue fundamentals I am unaware of and have a workable plan into the black I think they will have a hard time even getting more private investment. Crypto is turning toxic very quickly and getting bags of cash is not as easy as it was last year.
That said, Chia Network Inc still has a good long-term strategy, with international climate markets at the backbone, and I think if they have the runway they are going the weather the storm as a company. Unless they have been lying to all of us and their investors the wider crypto markets do not have a major impact on their day-to-day business, and that has so far not been my experience with them.
But if you as a farmer or XCH trader plan to exit your positions I would suggest the systems to do so are at great risk and getting worse by the day. Take from that what you will. I continue to farm and hold XCH, but I don’t hold anything in any coin that I might need to sell in the next year or so. Not financial advice, but who could even give accurate financial advice about crypto right now other than “sell everything and run away”?