Changpeng Zhao to Sue Sequoia Capital

CEO Binance believes last year's Sequioa's lawsuit against Binance caused "loss of chance to raise capital" and "damage to my reputation"
23 May 2019   847

Changpeng Zhao, head of the Binance, intends to continue litigation with Sequoia Capital, a venture capital company, and recover compensation for its reputational losses. This is reported by CoinDesk.

As Zhao claims in a lawsuit filed in the High Court of Hong Kong, Sequoia Capital China has damaged its reputation and prevented him from attracting financing on favorable terms.

In particular, he asks the court to determine whether “the damage was caused and, if so, on what scale,” because of the injunction issued on December 27, 2017 and limiting its ability to raise funds before March 1, 2018.

The injunction order has caused loss to me for which I am entitled to reasonable compensation by Sequoia. In particular, I have suffered i) a loss of chance to raise capital through successive rounds of financing at increasing high valuations; and ii) damage to my reputation.

Changpeng Zhao

CEO, Binance

Sequoia Capital filed a lawsuit against CEO Binance because of a violation of the contract on the granting of exclusive rights in March last year. The subject of the proceedings began negotiations on investing $ 80 million in Binance, which began in August 2017. If they succeeded, Sequoia would have received almost 11% share in the business.

However, in mid-December, when the bitcoin price rose above $ 20,000, Zhao allegedly told Sequoia that the exchange was seriously undervalued in the terms of the negotiated deal, and the proposed amount does not meet the expectations of shareholders.

At the same time, Zhao negotiated with another potential investor in the face of venture capital firm IDG Capital, which offered to invest $ 400 million and $ 1 billion in Binance for two rounds, respectively. Because of this, Sequoia accused Zhao of violating the contract on the granting of exclusive rights and demanded to establish whether the negotiations with IDG Capital violated the terms of their deal.

Earlier, in December 2017, Sequoia Capital, unilaterally and without notice, Zhao obtained an injunction, insisting that by starting negotiations with IDG Capital, the defendant had violated the terms of the agreement on granting the exclusive right to invest in his business.

However, the court subsequently ruled that Sequoia had no reason to seek to limit investment unilaterally, without providing an explanation of why several firms were involved in the process. Attempts to challenge this decision did not succeed, and on December 12, 2018, the panel of judges finally rejected the demands of Sequoia.

Now Changpeng Zhao will act as the plaintiff, promising to give additional information on this issue soon.

DEAPCOIN IEO to be Held at OKEx on 8.04

The project is planning to raise $2M a the price of 1 DEP on IEO will be $ 0.0025
25 March 2020   1017

OKEx Exchange announced Wednesday the 11th initial exchange offering (IEO). It will be conducted by the DEAPCOIN Project (DEP) and will be held on April 8th.

As in previous OKEx campaigns, the selection of participants and the selection of the allocation coefficient will be carried out according to two criteria: the average daily balance of OKB and the trading volume on the exchange. For each of the groups, allocation of 400 million DEP tokens is allocated.

The price of 1 DEP on IEO will be $ 0.0025. Thus, the project intends to attract up to $ 2 million from OKEx users. Trading in USDT and USDK pairs will start on the same day.

The DEP token was released by DEAPCOIN to shape the economy around the PlayMining entertainment platform they are developing, where users can earn cryptocurrency during games. DEP is presented as an ERC-20 standard token, while game items on the blockchain will use the ERC-721 standard.

Despite the generally negative dynamics of the IEO space recently, the token of the previous placement of the OKEx platform - HyperDAO - that passed at the end of February is currently trading almost 3 times higher than the initial selling price.