The next chapter in the drama surrounding Cake and DeFiChain: Julian Hosp is now once again offering his co-founder U-Zyn Chua the opportunity to take over the crypto company completely. According to Hosp, things should then start looking up again.
Around two weeks ago, a court in Singapore ordered the feuding founders of Cake, Julian Hosp and U-Zyn Chua, to work together. Cake is the crypto company behind DeFiChain (DFI) and U-Zyn Chua had filed for liquidation. But this application failed and now Hosp is once again putting forward the solution of taking over U-Zyn Chua’s shares in Cake and continuing to run the company on his own. Julian Hosp made this clear at an Audio conference and via X.
U-Zyn Chua has not yet commented publicly on the proposal. According to earlier statements by him, Hosp made an offer of a good 32 million US dollars in the fall of 2023, but this was withdrawn. According to Hosp, nothing has changed financially in the new offer for Cake, but he is trying to remove confidentiality agreements. In the meantime, the legal dispute had descended into a mud fight. Cake’s flagship project, DeFiChain (DFI), is currently trading just 3% above its all-time low from the beginning of May.
However, this is not stopping the controversial Julian Hosp from already dreaming of a DeFiChain comeback. If the deal with U-Zyn Chua succeeds, the first priority will be to rebuild trust, he says. On the other hand, Hosp promises, if possible, to be transparent about how U-Zyn Chua’s behavior has damaged DeFiChain’s price curve and alienated customers. This could herald the start of a further confrontation, as the two founders, who once had such close ties, clearly no longer see eye to eye.
But what are the chances of DeFiChain emerging from the valley? Hosp cites the lawsuit for the liquidation of Cake as the main reason for DeFiChain’s decline. However, a look at the charts shows that the big slump in DFI already happened in the first half of 2022, when the algorithmic stablecoin Decentralized USD (DUSD), which is part of the ecosystem, lost its 1:1 peg to the dollar – and has still not come close to regaining it. From the sidelines, former major Cake investor Jon Rost made fun of the new optimism among the “DeFighters” who want to buy DFI on X. Rost had expressed doubts about Cake’s business model and Hosp’s management behavior at the beginning of the year and managed to get paid out.
Conclusion: speculation about Cake and DeFiChain continues
We have continuously covered the dispute surrounding Cake (formerly Bake). Important cooperation partners have bailed out of DeFiChain and Julian Hosp is also experiencing great mistrust from outside due to his past at TenX and Lyoness. The court had described Cake as a fundamentally financially sound company and the remaining reserves are probably the reason why neither Hosp nor U-Zyn want to let go of Chua. DeFiChain is trapped in this construct and the coming weeks and months will have to show whether a fresh start will really be attempted here.
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