Dr. Julian Hosp’s company Cake is threatened with dissolution – DeFiChain (DFI) is crashing even further

Investors in Julian Hosps DeFiChain (DFI) have already suffered heavy price losses. Now Hosp’s company Cake is threatened with dissolution because he has (once again) fallen out with a co-founder. Meanwhile, the DFI coin continues to plummet.

What a fantastic week! Bitcoin, Ethereum, Solana, Cardano, Monero, Bitcoin Cash, Ripple – everything is rising nicely and powerfully. Everyone who holds cryptocurrencies is happy and a little richer. Everyone – except those who trusted Julian Hosp and his DeFiChain.

The Austrian, who lives in Singapore and always presents himself with a doctorate, is good at building communities and promoting himself. He leads large Facebook groups, appears at conferences and has a subscription to BTC-Echo to present himself in well-meaning interviews. In recent years he has primarily been the face of DeFiChain, a blockchain that specializes in, well, DeFi, i.e. decentralized finance.

The native token vder DeFiChain (DFI) jumped to more than 4 euros in early summer 2022. But then DeFiChain’s most important project, the DUSD stablecoin, lost parity with the dollar. It went back and forth a bit, the developers tried to cover the wounds with plasters, changed the algorithm – but it didn’t help. The stablecoin DUSD, the only relevant token on DeFiChain, was no longer stable.

At this point you should have noticed that something was wrong. The price of DFI then fell quite rapidly. About a year ago, DFI was only worth around 60 cents. But anyone who thought that the collapse was over learned through pain the old wisdom that a bad investment can lose another 90 percent even after a collapse of 90 percent. And again. Today DFI is at just over 17 cents, and it looks like investors will continue to bleed.

For Julian Hosp, this below-average performance, even for the bear market, was no reason not to pat himself on the back and accept that it would lead people to monetary suicide. On Twitter – and probably everywhere else – he shared a triumphant post when DFI was outperforming Bitcoin for a while. When the block trainer Roman Reher called him a scammer in a video, Hosp sued for character assassination – whereupon he edited his videos – and when BaFin opened an investigation into Hosp’s company Cake, he simply called Cake Bake and grandly announced that he had reached an agreement with BaFin to have. One could have become suspicious here or there.

The more miserable DFI performed, the more everything rose and DFI fell, the more irrelevant DeFiChain became in the DeFi space, the more Dr. Julian Hosp against Bitcoin and Bitcoin maximalists. Still in September boasted He explains that he explained to “one of the largest German TV channels” why he is skeptical about the current Bitcoin maximalism and prefers to support Ethereum and – logically: DeFiChain. Hopefully viewers didn’t take it too seriously. Meanwhile, on Twitter, he informed his 100,000 followers almost daily with good news about DeFiChain. As recently as November 14th, he tweeted that the future of DeFiChain was “glorious.”

You have to stretch the adjective “glorious” relatively far to apply it to DeFiChain. Not only has the price against Bitcoin been melting non-stop since September – which Doctor Hosp of course doesn’t share on Twitter – but at the beginning of December, Hosp’s company Cake, a central pillar in the DFI ecosystem, also began to wobble. Back in November, Cake (or Bake) laid off 30 percent of its employees, while there was apparently a dispute between Hosp and its co-founder U-Zyn Chua. At the beginning of December, Chua applied for the ordinary dissolution of the Singapore-based company (“winding up”). According to Tech in Asia, Chua was against the layoffs that Hosp pushed through unilaterally.

Hosp, who does not agree with Chua’s maneuver to dissolve the company, excitedly assures in a video that Cake is liquid. The dissolution has nothing to do with the fact that you are insolvent. Operations will remain unaffected and will continue to operate and deliver products and services. He makes serious accusations against his co-founder U-Zyn Chua: Instead of resolving the dispute constructively, he is dissolving the company. It is selfish “that he puts his own interests above those of our customers, employees and partners.” He enjoys the support of the “entire team” and will challenge Chua’s decision in court. However, he explains on Twitter that there are “differences of opinion between us about the management of the company that could not be resolved constructively internally.” However, since this is now being played out in court, Chua cannot say anything more about it at the moment.

So we don’t know a lot, but at least this: Julian Hosp and his co-founder U-Zyn Chua are screwed, Cake is probably having problems, and DeFiChain (DFI) is one of the worst investments to hold in this market phase.

Anyone who keeps their eyes open won’t be particularly surprised by this. Although Julian Hosp’s projects probably gild his bank account, they are usually an expensive drain for investors. That was already the case with Ten-X. Hosp, who had his first experience as a financial influencer with an MLM system and likes to boast about being a doctor and professional surfer – although he only practiced as a doctor for a short time – had joined the ICO just in time. Hype became the flagship of Ten-X in 2018, a wallet that primarily wanted to score points with a connected debit card. The business model or the value basis of the tokens made moderate sense from the start, but never really took off because the card was delivered sporadically just as the stablecoin DUSD maintained parity with the dollar. In the end, Julian Hosp fell out with the other Ten-X founders and left the project before it went under.

Do you see the parallels? There are many rules for crypto investments. One of them is that you should stay away from anything that has traces of Dr. Put Hosp in it. Unfortunately, anyone who has ignored this rule will have a little less fun in the current bull market.