Blockchain firm Chia Network has laid off 24 of its 70 employees.
The company's CEO Gene Hoffman has explained:
"Unfortunately, we’re going to lose some great people as we’ve endured a challenging funding environment over the past several months."
According to him, the company also plans to solve the problem by selling XCH tokens. As reported by CoinDesk, within its structure, Chia holds 2.6 million unencumbered XCH (about $70 million).
However, the company was unsure how the SEC might classify them. In the context of the Ripple case, Hoffman has admitted that "a carefully decentralized token can satisfy current standards for defining a digital commodity."
Chia confidentially filed an S-1 application with the US Securities and Exchange Commission in April to go public. According to Hoffman, after losing Credit Suisse as a banking partner, the company found a new one in a US institution.