By
staff writer
April 2nd, 2024
SUSHI token is a rising star that represents up to 77% of daily trading volume on Uniswap as of September 1st.
DeFi project SushiSwap, dubbed as the next step forward in the Uniswap protocol design, has experienced a ton of activities in less than a month since its inception. However, in a controversial business operation, the project is under new management, FTX CEO, Sam Bankman-Fried, who now holds the keys hence rejuvenating lost investors hope.
Notably, after the announcement, the SUSHI coin tripled in value in a matter of a few hours, from $1.12 to $3.38 during the weekend.
Apparently, SUSHI token is a rising star that represents up to 77% of daily trading volume on Uniswap as of September 1st.
However, on September 5th, rumors started swirling that Chef Nomi, SushiSwap’s lead developer cashed out $15M worth of developer funds for personal gains. As a result, it caused the token to crash 88%. As noted, the withdrawal amounted to 20,039 ETH and 2,558,644 SUSHI from the dev fund.
Chef Nomi however came out apologetically explaining his cause of action. According to him, he cashed out the tokens to focus on technical issues and furthermore he said it was in his right to sell them as a founder of the project.
“People asked if I exited scam. I did not. I am still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure we have a successful migration. @SatoshiLite did that and Litecoin had no problem surviving,” he explained in a series of tweets.
His action tainted a bad picture in the DeFi ecosystem and in the cryptocurrency industry at large. Well orchestrated exit scams that only take advantage of the unsuspecting and mostly uninformed investors are growing immensely especially in the crypto industry amid global push for further adoption.
What Next for DeFi Project SushiSwap
With new management, investors with the SushiSwap project are hopeful it will thrive despite the huge setback.
Speaking to media outlet Forbes, Sam Bankman-Fried highlighted something of his short term and long term prospects of the SushiSwap prop.
“Make sure the transition happens and happens effectively. And then the multi-sig transition happens. And after that, I no longer have the keys. Formerly my duty here is just those two things. And communication about those. Once the migration has happened, I have a lot of ideas of what I’d like SushiSwap to do…composing it with margin trading, borrowing and lending, and building out a version on Serum. But that would not be something I would unilaterally do. It would be up to the community to decide what happens,” SBR explained.