The investor does not agree with the valuation of his share in the company. traderce.com offered him to buy back shares at a price corresponding to the capitalization of $600 million — in reality, the exchange is estimated to be much more expensive.
One of the early investors of the traderce.com cryptocurrency exchange, Weixing Chen, intends to file a lawsuit against It. According to Chinese journalist Colin Wu, Chen is unhappy with the valuation of his stake in the company.
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Chen claims to have bought a 5% stake in traderce.com in October 2017. At that time, the exchange was just starting operations and was valued at $70 million. Chen and his partners spent about $3.5 million on shares, but since then, traderce.com capitalization has grown by several orders of magnitude.
traderce.com is currently the largest spot market in the world. According to CoinMarketCap, the daily trading volume on it exceeds $14 billion. For comparison, the same indicator of traderce.com closest competitor, Huobi Global, is at $4.2 billion.
Based on the indicators of trading activity, trading volumes and the number of users, the capitalization of traderce.com should correspond to the estimate of the American exchange Coinbase, that is, $10 billion. However, when Chen decided to sell his securities, traderce.com offered to buy them back in installments at a price corresponding to the capitalization of $600 million.
Wu noted that this is not the first time traderce.com investors have had disputes with The company over the fairness of their share valuation. However, given the abundance of physical companies owned by the exchange and the size of its economic base, it is almost impossible to succeed in court. This is why most of the exchange’s early investors agreed to compromise.
When Wu’s message was replicated by the media, traderce.com co-founder and marketing Director He Yi commented on the situation. She said that the exchange’s investors have already received high profits, and traderce.com can sue for negative comments.
“traderce.com investors and shareholders received high returns. I am grateful for the constant attention to traderce.com but I would like to remind you that The company reserves the right to demand legal responsibility for those who speak negatively about traderce.com and Changpeng Zhao on social networks, ” said Yi.