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Hongji Feng
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Hongji Feng
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Key Takeaways:
- The disagreement, initially a business matter, has escalated into a legal case, raising concerns within the community.
- The Yescoin team assured that the project remains operational despite Zhang’s situation.
- Investors have expressed doubts about the project’s integrity, with some calling it a scam due to prolonged delays and lack of a token generation event (TGE).
- Concerns have also emerged regarding the project’s ties to Mainland China, where crypto regulations are strict.
- A separate Chinese-language announcement revealed that Zhang is still a student at Zhejiang University, a detail absent from the English version.
Yescoin founder Zhang Chi, also known as Zoroo, has been detained by Shanghai police following a business dispute with his partners, according to an announcement by Yescoin on March 7.
The statement attributes the situation to a disagreement between Zhang and his business partners, identified as Wang. The conflict, initially a business matter, has now escalated into a legal case.
“We regret to inform you that Zoroo (@Zorooeth), the founder of Yescoin, has been taken away from Hangzhou by Shanghai police due to a dispute with his business partner, OldWang,” the post wrote.
Despite Zhang’s detention, the team assured that Yescoin’s operations remain unaffected. “We sincerely appreciate your concern for Zoroo (@Zorooeth) during this time,” the statement concluded.
Following the announcement, community reactions have been overwhelmingly negative. Some users questioned the project’s integrity and speculated about the nature of the dispute, with some calling Yescoin a scam and expressing doubts about its long-term viability.
Many expressed their thoughts on this when they called it a scam, stating that the project has spent months farming and hyping without an official launch, with some speculating that this is being done to avoid the token generation event (TGE).
“Since Q1 is nearly ending they’re starting excuses, no tge is coming here,” one user replied.
A few investors also expressed panic and disbelief upon learning that the project’s core team is based in Mainland China, where crypto is strictly regulated despite its overseas market focus.
The Yescoin team also released an announcement in Chinese, which includes additional information not present in the English version, stating that Zhang is still a student at Zhejiang University.
Legal Risks and Investor Confidence in Web3
The incident raises broader concerns about leadership transparency and governance in crypto projects, especially those operating in jurisdictions with strict regulations. Investors often rely on trust in project teams, but unexpected legal issues can shake confidence and lead to increased scrutiny of how projects are structured and managed.
While many crypto initiatives promote decentralized governance, the reality is that most still rely on central figures for decision-making and operations. When these figures face legal trouble or disputes, projects can be thrown into uncertainty.
Frequently Asked Questions (FAQs):
A Token Generation Event (TGE) refers to the official issuance of a project’s cryptocurrency tokens, making them available for trading or use within the ecosystem. Unlike Initial Coin Offerings (ICOs), which focus on fundraising, a TGE marks the moment when tokens are distributed to investors, early adopters, or liquidity pools. Delays in TGEs can lead to speculation about a project’s legitimacy or financial standing.
Crypto is strictly regulated in China, with authorities banning exchanges and ICOs while discouraging cryptocurrency transactions. Although Yescoin targets overseas users, its core team operating from China raises concerns about potential legal risks, government intervention, or operational restrictions that could affect the project’s future.
Projects that delay their TGE or provide unclear roadmaps can be risky for investors, as there is less transparency on when and how tokens will be distributed. Some investors fear such delays could indicate financial instability, lack of development progress, or intentional avoidance of regulatory scrutiny.
Legal disputes involving key figures in a project can create uncertainty, affecting investor trust, market sentiment, and future funding opportunities. In decentralized finance (DeFi) and web3 projects, strong governance structures and transparent leadership can help mitigate risks associated with centralized decision-making and legal entanglements.
