Hoffman hopes that by Chia going public and keeping XCH as a separate token, investors will not get hit with the wild price swings.
Chia coin has been trading at about $407.00, up 6.6%. It had a low of $380.93 and a high of $425.48 in the last 24 hours. Gene Hoffman, the president and COO at Chia Network said that his network takes volatility and regulation very positively
This man says that the crypto market is like the internet in 1998-2000. He thinks that there were big swings in people’s favorite companies. Amazon experienced swings of up to 60% either way before the 2000 dot-com bubble burst.
Moreover, Hoffman said that government regulation has been a major incentive for the company’s speculated early IPO. Volatility and regulation are inevitable teething troubles before widespread adoption of cryptocurrencies and the technology underpinning them, Hoffman said.
“Everyone who has merged their equity and coin has done something wrong with securities, which can’t be adopted for government-run central bank digital currencies.”
Mark Cuban, who is a billionaire entrepreneur, said that the market for cryptocurrencies is like the dot-com bubble in the late 1990’s. However, he expects some coins to survive this crash and reach Amazon or eBay’s level.
In the wider cryptocurrency market, there are a lot of ups and downs. China, which is one of the biggest countries for mining cryptocurrencies, has limited banks from providing crypto-related services. Elon Musk also created some more problems by criticizing bitcoin’s high carbon footprint and saying that he does not want to be able to use it as a payment option for his Tesla Inc (NASDAQ: TSLA) EV cars.