Just a week ago, the drama surrounding Cake and DefiChain (DFI) seemed to be over. Julian Hosp had taken over the crypto company from his co-founder U-Zyn Chua. But now the two are at loggerheads again.
For more than half a year, the public image of the crypto company Cake and the associated DeFiChain (DFI) has been characterized by a bitter dispute between the two founders Julian Hosp and U-Zyn Chua. The two disagreed on the strategic direction and personnel policy. An application by U-Zyn Chua to liquidate Cake failed in court in April. Then, a week ago, a solution seemed to have been found after all, as Julian Hosp took over the shares in Cake from U-Zyn Chua for a sum believed to be in the tens of millions and now wants to help DeFiChain get back on its feet almost single-handedly. But the peace between the two is already over – on X U-Zyn Chua shoots at Julian Hosp again and the latter counters just as irreconcilably.
Basically, both claim to be telling the only true story about Cake and DefiChain and accuse each other of misrepresentation. U-Zyn Chua writes that he himself was the one who ultimately paved the way for Julian Hosp’s takeover of Cake through his willingness to compromise. The latter in turn replies that the story from behind the scenes is not true and that U-Zyn Chua never made a legally binding offer for Cake shares. It is difficult to say which of the two is right – but one thing is clear: Julian Hosp and U-Zyn Chua are once again damaging Cake and DefiChain with their back-pedaling.
DeFiChain at a historic low – Julian Hosp nevertheless optimistic
The data service CoinGecko is currently reporting the next new all-time low for DeFiChain and DFI has fallen by 15% in the last seven days alone. DeFiChain is now 99% away from its all-time high from December 2021 at a time when the overall crypto market is on the upswing. Meanwhile, Cake (formerly Bake) has launched a 90-day program with Julian Hosp as its figurehead and intends to list 90 new coins as part of this program – which obviously does little to convince investors.
The latest post by U-Zyn Chua also deals with the fact that Bitcoin (BTC) displayed on DeFiChain was temporarily not covered. Although Cake initially rejected reports to this effect in January, it then reacted and bought additional Bitcoin from its reserves in order to put the dBTC on DeFiChain back on a solid footing. Julian Hosp and U-Zyn Chua present different versions of how the decision was made and what options were considered internally.
Conclusion: A fresh start for Cake and DeFiChain suffers from disruptive noise
From the outside, it remains incomprehensible why Julian Hosp and U-Zyn Chua cannot contain their egos and start the next mud fight. As far as is known, the takeover of Cake by Julian Hosp has been legally concluded and U-Zyn Chua also claims to wish the project only the best. The fact that negative headlines are now being produced again by the two former friends and causing discussions in the community is also a setback for DeFiChain. Anyone considering investing money in the ecosystem in such a self-made mess at Cake has to be willing to take huge risks and trust Hosp quite blindly – which is actually out of the question given its past with TenX and the Lioness pyramid scheme.
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