DeFiChain and Julian Hosp’s associated crypto company Bake (formerly Cake) are in a state of flux. A settlement has now been reached on the legal front with initial investors. The details are revealing.
DeFiChain (DFI), a project by Bake (formerly Cake), has also been the subject of recurring negative headlines due to co-founder Julian Hosp, as we have repeatedly reported. However, one problem now seems to have been solved, and it concerns the initial investors John Rost and Howard Fineman. Rost had announced a class action lawsuit against Cake, Hosp and other parties in the USA in January. Rost, Julian Hosp and Bake / Cake have now published two identical statements that amount to an out-of-court settlement.
Investor John Rost does this on X with the preamble that it is nice to celebrate victories and posts a photo of his luxury terrace online. Hosp, in turn, focuses on the document in which Rost pledges to stop spreading negative comments about Hosp’s lifestyle and Cake’s business. Finally, Bake focuses on the other document, which outlines the financial aspects of the settlement.
Bon vivant Julian Hosp – ex-companion Rost pledges to remain silent
One thing is clear: Rost and his partner Fineman will be paid an undisclosed sum. DFI to which they are still entitled will be exchanged by Bake (Cake) for the crashed algorithmic stablecoin DUSD and then destroyed. This is probably intended to stop the negative trend at DeFiChain and indeed: DFI recorded a daily gain of 8 percent after the settlement was announced and the linked DUSD even 12 percent. However, at around USD 0.22, DUSD is still miles away from the targeted 1:1 peg to the dollar and at USD 0.09, DFI is only a few percent above the all-time low from the beginning of the week.
However, Cake, DeFiChain and Julian Hosp will no longer have to deal with public disruptive fire from major investor Rost. He had also revealed private details of Hosp’s life from times when the two were still friends, which he now regrets in writing. But what struck us was this: Rost does not retract his stories, but only “regrets” them. It was about Hosp’s use of cocaine in Cuba at debauched parties, where marriage vows were probably also forgotten. Hosp had claimed that he was always faithful to his wife Bettina and remained silent on the subject of drugs. Rost then spoke out again yesterday on Reddit and indirectly agrees with our interpretation of the agreement; you can find a screenshot here.
Conclusion What is the future of DFI, Hosp and Cake?
Hosp acts as CEO of Bake and is the figurehead for DeFiChain as a crypto influencer. However, a lawsuit brought against Hosp by Cake co-founder U-Zyn Chua is not yet off the table and is set to continue on Tuesday (February 27), according to an announcement from the Singapore court. U-Zyn Chua is demanding the liquidation of Cake, citing unresolvable problems in the cooperation with Hosp as the reason. The signs of dissolution at DeFiChain have already led to the withdrawal of two important projects in February, Jellyverse and Dobby, and DFI’s price curve is in the basement. The presumably costly settlement with the initial investors Rost and Fineman could therefore prove to be a Pyrrhic victory.
We would like to take this opportunity to remind you once again of Hosp’s questionable past with the Lyoness pyramid scheme and the failed TenX crypto project and repeat our warning: the projects promoted by Hosp ended in deep losses for many investors, which has also been repeated with DeFiChain since summer 2022 at the latest. According to the information available, the current out-of-court settlement is hardly suitable for heralding a successful comeback of DFI (and DUSD) in a disrupted environment.
Leave a Reply