Friday, November 22, 2024

Insider Trading: Julian HOSP Admits Sale Of PAY Tokens.

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Julian HOSP definitely is a person of public interest. He has made himself this way in recent years. He has successfully managed to turn his name into a globally renowned brand. The Austrian has appointed himself a blockchain expert and markets his brand as such through his website www.julianhosp.com. He has cleverly used the ICO hype and the TenX ICO to market himself as a speaker, consultant, and author. He has become a “bookable” person.

Selective Reality

Julian HOSP announced his resignation as President of TenX on January 8, 2018. That’s the beginning of this new story.

Before entering the crypto scene, he had already cleaned up his curriculum vitae of his many years of work for the infamous MLM-Ponzi scheme LYONESS. As our readers already learned from our reports, Julian HOSP was responsible for LYONESS‘ Asian market as a high-ranking member of this Ponzi scheme. The circumstances of his resignation have not yet been disclosed. According to FinTelegram’s information, LYONESS and Julian HOSP have signed a confidentiality agreement. To this day, Julian HOSP is a legend in the LYONESS system and has shaped and driven it with his marketing talent and his “duracell bunny” energy.

In our opinion, Julian HOSP’s mistake in this regard was and is less the activity for LYONESS than the concealment and deliberate destruction of all evidence of his respective activities. In the absence of an explanation by Julian HOSP, speculation results. HOSP itself is to blame for these speculations. If HOSP had made a public statement regarding LYONESS after its activities had been disclosed, the matter would probably not have escalated to such an extent.

Instead, he attacked the people who reported it. HOSP filed a complaint against FinTelegram with Google, which was dismissed. And he senses himself a victim of the public. The complaining about the unfair world is simply another distortion of his reality. A public person who stylizes his or her name into a brand is also held accountable by the public. Whoever lives off the public is also judged by it. You have to know that when you act like Julian Hosp in public.

The selective publication of facts creates a false picture. You can also lie with the right facts by omitting them.

Selective Communication Is Not Disclosure

Disclosing selective facts is lying and contradicts the legal regulations for public companies. According to the so-called disclosure guidelines, these companies must report all circumstances and facts relating to the company and the persons acting in a timely and truthful manner.

An investor in a public company must be in a position to gain an impression of the company’s situation. The selective disclosure of important facts can therefore neither be in line with the ethical rules of conduct nor with the civil and criminal laws under most jurisdictional regimes. TenX is not listed on the stock exchange but is undoubtedly a public company. Its tokens are listed on public crypto exchanges. Moreover, the company raised USD 80 Million from investors in 2017 during its ICO. Due to the characteristics of the PAY token issued in the ICO, it qualifies as a security token – the equivalent of a share.

Insider Trading?

Only a few hours after the announced resignation of Julian HOSP, a posting appeared on Reddit in which Julian HOSP was accused of selling a large number of PAY tokens only a few days before his resignation.

And again the HOSP applied his approach of providing selective information only – he did not mention these token transactions in his video message. But he had to confirm them. That’s the blockchain world which he obviously hasn’t understood so far. You can’t hide such transactions.

In a statement to BTC Echo, Julian HOSP now argues that his resignation was spontaneous in addition he argues that he had to sell the tokens for tax duties. There are no tax duties requiring to sell property a few days before the end of the year.

He would not have known at the time of the sale of his PAY tokens – a few days before the announcement of his resignation – that he would resign. HOSP obviously wanted to counter the accusation of insider trading. That can be believed or not. Given Julian HOSP’s history so far and in terms of critical reporting, we tend not to believe that. But we do not know for sure, of course. As a matter of fact, neither Julian HOSP nor TenX communicate openly with the market.

Insider regulations apply to financial instruments on regulated markets. This definition covers organized markets and multilateral trading venues in developed countries. The PAY token is a financial instrument (security token) that is traded on organized markets. Accordingly, it could be argued that even if there had been no intention to resign from HOSP at the time the PAY tokens were sold, he would have been legally or at least ethically obliged to publish the intention to sell such a large number of PAY tokens. He has used every little would-be argument for marketing purposes.

Julian Hosp is an insider at TenX in the legal definition. Insiders must report their transactions with the issuer’s securities. The TenX PAY token is to be qualified as a security token. Hence, TenX as issuer and Julian HOSP as a board member of the issuer are subject to the regulations of the securities laws of the individual countries. The penalty provisions on insider trading in the various countries include the use of insider information with the intention of “obtaining a pecuniary advantage” for oneself or a third party.

In this respect, we believe that both scenarios qualifies as insider trading:

  • Julian HOSP has sold a large number of PAY tokens in the knowledge of his imminent resignation, or
  • Julian HOSP has sold a large number of PAY tokens without the knowledge of his imminent resignation.

In both cases, the public should have been informed about by either Julian HOSP and by TenX.

Preliminary Summary:

Julian HOSP is an insider at TenX, the issuer of the PAY tokens. With the sale of the PAY tokens admitted by Julian HOSP, he has, in any case, conducted an insider transaction. By failing to report this to the public, he has violated the relevant insider regulations to the detriment of the other PAY token owners. If Julian HOSP had already intended to resign as President of TenX at the time of the sale, then he also acted intentionally to the detriment of the other PAY token owners and is obliged to compensate them.

In addition, TenX has a legal and ethical obligation – if TenX was aware of this transaction and failed to report on it, both parties should be held liable.