Topic: beginner in economics - have one question about chia crypto price.. (Read 94 times)

The founder and lead developer of chia is Bram Cohen the designer and previous owner of the bittorrent network protocol, which at one time accounted for nearly 30% of total internet bandwidth. He sold bittorrent to Justin Sun and chia coin became his next big project. Bram Cohen's name and reputation are synonymous with having a solid software engineering background with good design and development skills. I think most would consider Bram Cohen to be a far superior software engineer in comparison to say Vitalik Buterin of ETH fame. Those are some of chia coins positive points.

There could be dissident factions to chia coin, if it is true that some harddisk manufacturers have released warnings that using their hardware to mine chia coin will void the warranty are true. These are some of the negatives.

Its very easy to draw cases in support of and against chia coin becoming a success. Eventually, economics and finance dictate that investors and markets will decide what the true value of chia is, if it ever goes public under an IPO.

I'm not certain chia will ever go public. Bram Cohen's previous venture bittorrent didn't follow this blueprint or path. With $4 billion in liquidity, they probably don't need the additional capital an IPO would give them. There are also benefits with not going public, mainly being that the founders would retain greater control over the development and future of chia coin. Without opening the door to influence by other parties or majority stock holders. Who could have conflicting ideas about what the future of chia could be.

Which makes the motive behind chia coin going public something of a mystery.

I am not an expert in this field. If it is based on the coin supply market with a large enough amount multiplied by the number of investors who have 10% of the coin, then at least you have to be able to convince the big holders to pump coins in one day approximately 3x. Is this enough guarantee that anyone can be in a scary circle. Imagine the price dump could have made it exactly -10x.

I'm just saying what I know, because the rest you probably understand much better than I do.

guys, today I have read one post on reddit saying that chia, as a company, is valued at 0.5 billions but they have premined cca 21mil coins x 250 USD = they are sitting on 5 billions (so 10x more as value of company)..

that comment was like - wait for IPOs and don't buy today so my really beginner in economics question is - is it an indication for price to go 10x lower..?

because this is how I understand that comment and I'm like

1) where to get a info how much chia as company is worth?
2) if the company is really worth at 0.5bil and has 5bil in coins, will it lower price 10 times?

maybe some of you are bigger maniac on economics then me...