Julian Hosp: DeFiChain and DUSD Crash, Dispute Over Cake Group

Things are getting tight for crypto celebrity Julian Hosp: his company Cake Group, founded together with U-Zyn Chua in Singapore, is to be wound up at Chua’s request. One of Cake Group’s main projects is the DeFiChain (DFI) and the associated algorithmic stablecoin DUSD.

Following the announcement of the liquidation process, DFI plummeted by 20 percent and DUSD by as much as 33 percent. Meanwhile, Julian Hosp has gone on the offensive with a blog post and believes that the Cake Group is on the right track with him as CEO.

However, anyone who has followed the career of 37-year-old Hosp will have guessed that his next project after TenX and Lyoness is failing. There was also a falling out with the founders of TenX. Chua threatened legal action against Hosp as early as mid-November because Hosp was making far-reaching personnel decisions on his own.

Now Chua writes on X that there is a dispute between him and Hosp that cannot be resolved constructively internally. As far as is known, U-Zyn Chua did not agree to lay off dozens of developers and programmers at the Cake Group. This personnel drain is also likely to affect DeFiChain.

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This is why Julian Hosp’s DeFiChain is in existential crisis

Observers and disappointed investors discuss the fate of DeFiChain on Reddit. User Cloudwalker187 has expertly compiled criticisms of DeFiChain. The management is “a joke” and centralized. In fact, Julian Hosp is the figurehead of DeFiChain and DUSD. The alleged stablecoin already lost its promised 1:1 peg to the US dollar in the summer of 2022 and is currently trading at just USD 0.10. But even this is theoretical.

But even this is only a theoretical value. As Cloudwalker187 pointed out, investors are “trapped” in the DeFiChain ecosystem along with DUSD because triggering crypto assets there costs another 30 percent in fees. Hosp had repeatedly played down the crash of DUSD as a temporary problem.

Cloudwalker187 writes that DFI is “one of the worst-performing altcoins of 2023”. This still sounds comparatively friendly, as DeFiChain is trading at around USD 0.18, close to an all-time low, and has not been able to benefit in any way from the upswing in the crypto markets since mid-October.

Julian Hosp has now announced that DeFiChain will flourish by joining a MetaChain. According to Cloudwalker187, however, gambling and copies of Ethereum projects play the main role at MetaChain.

Cloudwalker187’s conclusion that DeFiChain is a “pyramid scheme” is particularly controversial. New stories and project names are constantly being used to attract new capital. We recall Lyoness, which was condemned as a “pyramid scheme” by several courts and in which Julian Hosp made a lot of money.

Incidentally, Hosp now pointed out that the Cake Group is in a solid financial position following rigorous cost-cutting measures. However, the figures he presented are from 2022 and are therefore not very meaningful.

What’s next for DeFiChain, DUSD, Cake Group and Hosp?

A court hearing on the Cake Group is scheduled for December 22 in Singapore. Hosp is confident that the application for liquidation will then be rejected. However, U-Zyn Chua is equally certain that he has the better cards in court. In any case, the court battle and public recriminations between the two are not a healthy basis for breathing new life into the once joint projects. Nobody knows how DUSD will ever get out of its downward spiral. DeFiChain is also likely to symbolize “scorched earth” for investors, MetaChain or not.

Conclusion: Julian Hosp on the brink of failure – investors deep in the red

Cloudwalker187 also mentions the “toxic community” and the focus on German-speaking markets in his review of DeFiChain. We have been reporting on Julian Hosp’s business practices for years and could sing our own song about the community that blindly follows Hosp and attacks critics.

The bottom line, however, is sober: Anyone who invested in DFI must have been very lucky in terms of timing in order to realize profits. We were therefore once again in front of projects in which Julian Hosp is involved. The gifted speaker Hosp has already disappointed many investors with huge losses and is often called a “scammer”.

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(Featured image by Austin Distel via Pixabay)

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