SushiSwap Completes a $14 Mln Worth Buyback But Metrics Still Continue to Decline
SushiSwap has successfully conducted the $14 million worth of buyback.
The buyback of SUSHI tokens was made from the funds that were returned by the project’s anonymous creator Chef Nomi last week after cashing out his dev shares in the week before that.
— SushiChef (@SushiSwap) September 15, 2020
In a buyback, a company purchases its own shares in the stock market, reducing the number of shares, thereby inflating the value of the stock.
In the case of SUSHI, the price jumped 17.5% to $2.63, only to return to the level before the pump at $2.25.
The only correct way to trade $SUSHI is having Sam or the official account on notifications. Don't touch it otherwise.
The results of the vote were clearly visible since it was proposed two days ago, but it's only "priced in" when an official tweet is made lol. https://t.co/nQDN5I7INc
— Hsaka (@HsakaTrades) September 14, 2020
As we reported recently, Andre Cronje, the man behind Yearn.Finance, whose governance token YFI hit a peak of $43,678 most recently since its launch as a zero value coin in mid-July, likened the SushiSwap saga with that of 2017 ICO scams.
Liquidity Takes a Hit
Total liquidity on the Unicorn DEX clone has also declined after economic reward incentives recorded a sharp scheduled reduction.
The latest DeFi liquidity pool and exchange platform were launched just a week ago to become the most-talked-about platform because of all the controversy surrounding it.
On SushiSwap, market participants can add digital currencies into their liquidity pools and earn rewards. Much like other platforms in the DeFi space, rewards are offered to early LPs to bootstrap liquidity.
With its migration from Uniswap, SuhsiSwap overtook the liquidity from its rival that went to $1.5 billion on notional value. But after a recent change, which reduced the number of rewards distributed to liquidity providers by 90%, block rewards cut down from 1000 to 100 tokens, the total liquidity pooled on the platform has declined by over 42% to around $860 million.
An Everything Else Too
Much like liquidity, volume on SushiSwap is decreasing. On Sept. 10th, it was at its highest at $274 million, and on Sept. 14th, it went down to $155 million.
Meanwhile, Uniswap is regaining its top position as the automated market maker (AMM), recording $1.12 billion in liquidity and over $468 million in volume.
Unlike SushiSwap, Uniswap has no governance token, which has $1.1 billion in total value locked (TVL), down from nearly $2 billion on Sept. 1st but recovering fast from the decline to $525 million last week, as per DeBank.
SushiSwap, on the other hand, currently has $804 million in deposits, decreasing from its peak of $1.56 million.
“As an entrepreneur I am rooting so f*cking hard for uniswap and against everything about sushi. But as a crypto degen, I am loving the ruthless competition and embrace of open source “rules,” said Messari’s Ryan Selkis.