Tron owns a piece of BitTorrent founder’s new crypto project

29 Aug, 2018
by Ryan McInally
Tron owns a piece of BitTorrent founder’s new crypto project

When Tron’s founder justin Sun purchased peer to peer application BitTorrent in June of this year, Tron and Sun unknowingly became a small owner of the Chia Network, a new cryptocurrency protocol that was founded by BitTorrent’s co-founder, Bram Cohen.

The Chia Network has not been released, but has secured funding in the sum of $3.4 million from Naval Ravikant, who also invested in a number of crypto and blockchain startups. Miners on the Chia Network prove that a certain amount of disk space on their hard drives is available to the network, and then turn over that space for Chia’s use.

According to reports and documents CoinDesk obtained, the day following Sun’s winning offer to the BitTorrent Board on February 14, the next day the same board passed an agreement with Bram Cohen to make a $50,000 investment in the Chia Network using a Simple Agreement for Future Equity (SAFE) in exchange for some of the company’s intellectual property. In terms of how big Tron’s stake is in Chia it is still unknown as well as what specifically the intellectual property constituted. However, a spokesperson for the Chia Network did tell CoinDesk that all property belongs to Chia and was developed by its staff, contractors or licensed through third parties.

Both companies, according to CoinDesk appear to acting in lockstep with one another as to avoid entering into legal disputes with one another. This includes both companies apparently signing a “mutual releases and non-disparagement” agreement.

BitTorrent’s founder Cohen quit the company but remained on the board in 2017 to work on creating Chia. Merger documents show that Cohen still held 31% of BitTorrent’s common stock, which holders received $29 million of the $119 million transaction. Given Cohen held a third of common stock, his pay out from the BitTorrent sale was likely in and around $10 million (USD).

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