News - Will the Cake Group be disbanded?
Internal squabbles, a co-founder seeking to liquidate the company on his own authority and the native token DeFiChain (DFI) in free fall: Julian Hosp's Cake Group is in serious turmoil. What the company is really like and what founder Julian Hosp has to say about the allegations.
Board member U-Zyn Chua , who is also the company's CTO, signed a application submitted for the dissolution of the Cake Group at the competent court in Singapore. Piquant detail: this was not known to other board members such as Julian Hosp, as the company writes in a statement to BTC-ECHO. Hosp himself only found out about the liquidation request five days later, namely yesterday, Dec. 6.
The attempt to liquidate Cake Group raises questions about the health of Julian Hosp's DeFi company. In November, there were possible financial holes in the company as a result of staff reductions at Cake. The management team was also at odds at the time. U-Zyn Chua publicly voiced his criticism of the layoffs on the X platform.
I do not agree with the decision made today at Cake Group to layoff a significant portion of our team members. A majority of whom affected are engineers and builders, whose skills and dedication are integral not only to our company’s progress but also to the industry at large.…— U-Zyn Chua (@uzyn) November 14, 2023
However, according to Hosp's statement, the company's finances are not the cause of Cake's internal dispute. The company's balance sheet, which was also shared with BTC-ECHO, supports this view. It is true that total assets dropped significantly from the previous year during the crypto winter of 2022. However, liabilities of $210 million are offset by assets totaling $367 million. Thus, the Cake Group is in the black.
Christmas at Cake - without U-Zyn Chua / Source: Julian Hosp's LinkedIn profile
However, the remaining management team is not willing to simply grant the request for dissolution.
"We disagree with the basis on which the dissolution petition was filed and are in the process of hiring legal counsel to challenge and dismiss the dissolution petition."
Hosp himself is combative, affirming his "100 percent commitment to the Cake Group." It is "selfish (from U-Zyn Chua, editor's note) to put one's own interests above those of customers, employees and partners."
A token that goes against the trend / Source: coinmarketcap
It remains to be seen whether the remaining team will succeed in turning things around. First, the team must avert their former colleague's dissolution request in court on Dec. 22.
Meanwhile, Cake Group's native token, DFI, is in free fall. On a monthly basis, the DeFi token is down 30 percent at the time of writing.