Bake, the innovative crypto establishment responsible for DeFiChain (DFI) and DUSD and co-founded by Julian Hosp, appears to be navigating turbulent times. While Hosp rose to prominence in the crypto space with ventures like TenX and Lyoness, its latest venture with Bake appears to be facing difficulties. Although official statements say 34 employees have been laid off since January, insider sources believe the number could be closer to 60. Additionally, claims are doing the rounds that the company is facing a monthly deficit of 1 million Singapore dollars, despite Hosp’s emphasis on expansion.
What is Bake Crypto?
Bake is the native cryptocurrency token of BakerySwap, a decentralized finance (DeFi) platform based on the Binance Smart Chain (BSC). BakerySwap offers various DeFi features including automated market making (AMM), yield farming and staking, while offering reduced transaction fees compared to platforms on Ethereum. Unique to BakerySwap is the integration of non-fungible tokens (NFTs), which allows users to trade and use digital collectibles within the platform. As the platform’s native token, Bake is used for governance, transaction fees, and as a reward token for liquidity providers and stakers.
Analyzing the dynamics of DeFiChain and DUSD
The performance of DeFiChain (DFI) and DUSD is causing a stir. Although DeFiChain presents the image of a platform managed by a Decentralized Autonomous Organization (DAO), a closer look reveals otherwise. According to reports, 70-80% of voting nodes are under the influence of the Hosp group. This centralized control over decision-making calls into question the platform’s supposedly decentralized ethos.
The development of DUSD further adds to the concerns. Once valued at $1, its value has now fallen to around $0.25. Despite previous financial support worth $45.7 million in May 2022, DUSD appears to have lost its funding reserves. The situation is exacerbated by the high 40% fee imposed on DUSD sellers, which further reduces its practical value.
The decline of DeFiChain and previous setbacks
Recent data shows a significant decline in DeFiChain’s appeal. A once-robust investment of $1.2 billion in May 2022 has now shrunk to just $187 million. At the same time, the market price of DFI has fallen sharply, falling from over $4 to just 35 cents.
Another blow to DeFiChain’s reputation came with a massive security breach in early 2022 that resulted in the loss of approximately 1,780 Bitcoin (BTC). At the time, that was equivalent to almost $90 million. Concerns about compensation or corrective action only reinforce existing fears.
Future of baking
While Hosp continues to focus on the issue of layoffs, a broader concern remains: the future development of DeFiChain and DUSD. Since there have been similar patterns in ventures in the past, it seems essential for potential investors to proceed with caution. As attention turns to newer ventures, thorough due diligence is recommended for those considering involvement in Julian Hosp’s projects.
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