Tron’s BitTorrent Deal Sees Justin Sun become Part Owner in Chia Network Crypto Startup by Bram Cohen
Tron Owns a Stake In The New Crypto Project Made By BitTorrent’s Founder
It looks like when the founder of BitTorrent decided to sell his company to Tron, it was not just one of the most prestigious companies from the web 2.0 that changed hands. According to reports, now Justin Sun, the founder of Tron, also has a small stake in Chia Network, a new project from the BitTorrent founder Bram Cohen which will be launched soon.
The fact, which was not disclosed by any of the two firms before, was recently uncovered by the media after Sun submitted his acquisition to the BitTorrent Board. The transaction happened during the negotiation for the company. At the moment, both companies are staying silent on the matter.
A spokesperson from the Chia Network has told the media that Chia is committed to open source technology and that no license or assignment of rights happened from BitTorrent to Bram Cohen or Chia.
According to sources with knowledge of how the deal happened, both companies entered an agreement of mutual release and non-disparagement that stated that neither of them would suit the other one for events prior to the investment.
Cohen and Chia
Cohen left BitTorrent at the end of 2017 to focus on the Chia Network. He still remained on the board, though. At the moment, he owns 31 percent of the common stock of BitTorrrent. Each share is worth roughly around $0.81 USD.
Chia Network is intended to be an eco-friendly way of using a public blockchain. On Chia, miners prove that a certain amount of disk space is available to the network and then the validators turn over this unused space on the network.
The company had a funding round this year and it was able to raise almost $3.4 million UD from companies like Andreessen Horowitz, MetaStable, Danhua Capital, True Ventures, Greylock Partners and DCM, which was a leading shareholder in BitTorrent.
Google Patents lists a total of six different patents with Cohen as their inventor. The oldest one of them is “end-system dynamic rate limiting of background traffic” which is still being used at BitTorrent.
Finally, some internal documents state that Justin Sun intended Cohen and other key members of the staff to return, but he changed his mind during the deal.