New cryptocurrency Chia collapsed three times
The new cryptocurrency Chia (XCH) has fallen in price three times since the start of trading on Monday.
According to WEIBO, the token has risen to the second place among the most popular cryptocurrencies.
The growing popularity of cryptocurrency Chia may lead to a shortage of hard drives and solid-state drives in the consumer market.
The token of the main Chia Network network began trading on the OKEx crypto exchange on May 3. According to CoinMarketCap, in four days, the price of the token fell from the highs of the first day of trading from about $1800 to $600.
Earlier, miners caused a shortage of hard drives and solid-state drives in Hong Kong before the launch of the main Chia Network. Already in mid-April, the main stocks of HDD and SSD were sold out, and because of this, their price tripled.
The Chia Network blockchain was created by Bram Cohen, an American developer and creator of BitTorrent. He believes that bitcoin and other cryptocurrencies running on the Proof-of-Work (PoW) algorithm use too much electricity.
Chia runs on a Proof-of-Space-and-Time algorithm and uses disk space as a transaction validator. Users who provide their own disk space to support the network are rewarded for this.
The token is traded on OKEx exchanges, Gate.io, MXC.COM and Bibox. The amount of disk space occupied by the cryptocurrency has currently reached 2.11 exabytes. 457,402 coins were mined out of just over 21 million units.
The main network of the project will be launched in March 2021. According to the February 10 white paper, the company raised about $16 million in funding through SAFE agreements. The last $5 million round ended in August 2020. The company is supported by venture funds Andreessen Horowitz, Galaxy Investment Group, DCM Ventures, True Ventures and others.