One of early investors is going to sue the exchange

One of early investors is going to sue the exchange

The investor does not agree with the valuation of his share in the company. 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 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 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, capitalization has grown by several orders of magnitude. 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 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 should correspond to the estimate of the American exchange Coinbase, that is, $10 billion. However, when Chen decided to sell his securities, 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 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, co-founder and marketing Director He Yi commented on the situation. She said that the exchange’s investors have already received high profits, and can sue for negative comments.

“ investors and shareholders received high returns. I am grateful for the constant attention to but I would like to remind you that The company reserves the right to demand legal responsibility for those who speak negatively about and Changpeng Zhao on social networks, ” said Yi.