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Crypto and digital asset companies · United States

Chia Network

chia.net ↗

Chia Network runs a proof-of-space blockchain and is trying to tokenize stocks on it.

Little protection left
Assessed 21 July 2026 · Evidence as of 21 July 2026
Not much stands between this business and its pressures.
On the recordSince 21 July 2026 · Checkable from November 2026 · Every call on the record Checkpoint: Chia 3.0 hard fork (Proof of Space 2.0, CHIP-48/49) plus SEC ruling on Permuto Capital's tokenized trust filings
The call

Chia lost its clean-energy pitch when Ethereum went proof of stake, and its stock-tokenization plan through Permuto Capital is still waiting on the SEC while the token sits near record lows.

Chia Network built a blockchain designed to use less electricity than Bitcoin by using hard drive space instead of computer power. The company's main advantage, being energy-efficient, disappeared when Ethereum switched to a similar system in 2022, leaving Chia competing in the crowded world of tokenization platforms where Ethereum and Solana already dominate with much more money and users. The company's own token (XCH) crashed from a peak of over $100 to about $1.20, they laid off 37 percent of staff in 2023, they have not raised new money in five years, and their initial public offering has been stuck since 2023. The one thing that could revive the narrative is if their new project, a compliant tokenization trust with Microsoft assets, actually ships and attracts real business; if it stalls or attracts zero customers, Chia will have run out of stories to tell.

Why
01
AI pressure: AI-assisted code attackers targeting the Chia codebase. AI-driven fuzzing finds bugs faster than Chia patches them, forcing rushed 2.6.0 to 2.7.2 releases and burning engineering time. Could AI do the core job? Only partly.
02
Bigger players: Ethereum (with Solana and newer chains like Tempo). Ethereum's 2022 shift to proof of stake erased Chia's energy pitch, and it now holds 100 times more tokenized asset volume. Could a giant copy it? Yes, easily.
03
What protects it. Founder Bram Cohen's name and a completed SOC 2 audit keep some institutional doors open, but nothing has converted to revenue.
What would change this call
SEC ruling on Permuto Capital's tokenized-trust filing (e.g., MSFT trust). Shows whether Chia's compliant-tokenization strategy can attract real institutional assets.
Outcome of Chia's confidentially filed S-1 (approval, delay, or withdrawal). Indicates whether an IPO path exists to bring in new capital.
XCH price holding above or falling below $1.00 through 2026. Signals whether farmer participation and network security economics are stabilizing or collapsing.
Key numbers
  • XCH token near all-time low, about $1.20 (2026-07-20)
  • Market cap $18 to 24M, down from $500M 2021 valuation (2026-07-20)
  • 37% staff cut in 2023 after IPO banker fell through (2023-10-02)
Named risks
  • XCH token at all-time low undermines network security economics and farmer participation. Severity: high
  • IPO stalled since 2023 with no confirmed SEC resolution as of July 2026. Severity: high
  • AI-assisted attackers actively fuzzing codebase forcing rapid patch cadence, straining security resources. Severity: medium
  • Nov 2026 hard fork (Proof of Space 2.0) carries execution and community-adoption risk. Severity: medium
  • No new capital raised in five years, limiting runway amid token collapse. Severity: high
Rivals, as read in July 2026
RivalDirectionEvidence
Ethereumlosing toEthereum's 2022 PoS shift erased Chia's energy-efficiency wedge; dominates RWA tokenization as of 2026-07
Solanalosing toSolana hit 300,000 RWA holders per 2026-07-16 report, dwarfing Chia's tokenization traction
Filecoinlosing toFilecoin remains far larger decentralized storage network per 2026-06-16 comparison
TempocontestingListed as direct comparator in institutional payment/tokenization rails per CBInsights, 2026-05-25
Questions people ask
Is Chia Network profitable in 2026?
No public profitability data exists. Third-party estimates put revenue near $12.9M (ZoomInfo, as of 2026-06-06), while its XCH token sits at an all-time low near $1.20 with market cap of $18-24M as of 2026-07-20, suggesting weak business traction.
Has Chia Network had layoffs?
Yes. In October 2023, Chia Network laid off 26 of its 70 employees (about 37%), citing loss of its banking partner Credit Suisse, which delayed its planned IPO, per CoinDesk reporting dated 2023-10-02.
Is Chia Network's IPO still happening?
Unclear. Chia confidentially filed a draft S-1 in April 2023 and submitted a third confidential amendment by August 2024, but as of 2026-07-07 it remains private with no confirmed listing date, per Upmarket.
Who is Chia Network's biggest competitor?
In storage, Filecoin dominates with far greater market cap. In its newer tokenization pivot, Ethereum and Solana lead RWA tokenization with far more assets under management, alongside players like Ondo, Securitize, and BlackRock's BUIDL, as of mid-2026.
Could AI replace Chia Network's blockchain?
Chia's own team said in an April 2026 Q&A that AI 'hasn't turned up anything interesting' in its core proof-of-space math, but AI-assisted attackers have been actively fuzzing its code, forcing rapid patch releases from version 2.6.0 to 2.7.2 between March and July 2026.
Who owns Chia Network and what is it worth?
Chia Network is privately held, founded by BitTorrent inventor Bram Cohen and Ryan Singer in 2017. Its last marked valuation was about $500M from a May 2021 Series D round; it has raised no new capital since, per Forge Global data from 2025-06-03.
Timeline
  • 2026-07-20XCH hits all-time low near $1.20, market cap $18-24M
  • 2026-05-20Chia releases version 2.7.1 security patch
  • 2026-04-30Team states AI found nothing new in proof-of-space math
  • 2026-03-26Chia ships 2.7.0, 'Combatting the AI Siege' release
  • 2026-02-27Chia 3.0 roadmap announced; hard fork set for Nov 2026
  • 2026-02-25CVE-2026-3192/3193/3194 published for Chia Blockchain RPC layer
  • 2026-02-03Chia enters purchase agreement with NoSSD
  • 2025-04-09Permuto Capital tokenized-trust joint venture announced
  • 2024-08Third confidential S-1 amendment submitted
  • 2023-10-02Chia lays off 26 of 70 employees (about 37%)
Revision history
21 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
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