Early Investor Allegedly Planning To Sue Binance Over Mispriced Equity Valuation  

An early-stage equity holder alleges that the crypto exchange Binance is severely marking down its own valuation as he is looking to sell his shares.

The early investor intends to sue the exchange claiming the exchange is underrating its shares in order to evade making a large payment. As per him, the exchange should be worth at least ten billion USD. However, Binance mentions that it is worth six hundred million USD only.

As per local news source WuBlockchain, the investor is of the opinion that Binance is purportedly mispricing his equity valuation.

Weixing Chen, the aforementioned investor, alleged to have purchased five percent shares of the exchange when the firm was set up in October 2017. At the time, the exchange marked itself at a valuation of seventy million USD.

Nonetheless, in the subsequent months, Binance flourished and rapidly became one of the world’s largest digital asset exchanges, with a daily trading volume of billions of dollars.

Ultimately, the frantic activity shot Binance’s valuation to a suggestively greater value than its earlier mentioned seventy million figure, with the report stating it’s around ten billion USD in 2020, based on users, activity, and daily trade volumes.