SushiSwap got Sushi dumped.
Today, the token was trading at $4.91 when it started slumping and didn’t stop until it lost about 60% of its value.
At the time of writing, SUSHI was trading at $2.27, as per CoinGecko.
The losses came after Chef Nomi, anonymous creator of SushiSwap, the clone of DEX Uniswap, sold part of the SUSHI tokens allocated for the development of the ecosystem.
Approximately 2.56 million SUSHI, for 17,970 Ether (worth over $6 million), has been sold by him within ten days of the launch of the project. The new dev shares are now under the SushiSwap multisig contract for which the signers are being chosen.
The reason for this, “I stop caring about price and I will focus on the technicality of the migration,” shared Chef Nomi on Twitter while clarifying about his recent move for which he has received “blaming and FUDing” when he is “taking IL for you.”
Chefnomi was doing an AMA just a few hours ago on Wechat facing the Chinese community (right before he sent the tweet out saying he converted dev part $SUSHI to $ETH), during that AMA he reassured he's not going to sell off the team token
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) September 5, 2020
The anonymous creator says he did not exit scam as he will “continue to participate in the discussion. I will help with the technical part.”
Does this remind you of someone, maybe Litecoin creator Charlie Lee? This is because Chef Nomi did pull a Charlie Lee. “I am still here…@SatoshiLite did that and Litecoin had no problem surviving,” he said.
Lee is infamous for selling all his LTC at the top of the market. And if the community thinks he didn’t deserve the ETH, you better think again and think hard because
“I think my contributions justified that. I wrote the migration code. I did all the audits. I coordinated the largest LP pools ever. I created a large community. I sprung up 100s of LP scam projects. All in 1 week.”
That’s right, he created the idea and the community when the price wasn’t under pressure. And given that it’s an open experiment if you don’t believe in the idea or community, “you are free to leave,” there are “no strings attached.”
Hope you guys don’t mind I sold the premine, but I put nearly 2 weeks of hard work into that and just needed a break
— moon is tweeting (@MoonOverlord) September 5, 2020
“All I can say is if this experimentation goes on to success, you guys know the upside. But if people don't believe in the project, it will fail and we return everything back to the original creator @UniswapProtocol. I am happy with either result,” concludes Chef Nomi.
The project has been going strong, it even surpassed lending platform Aave in terms of TVL, which has now dropped from $1.6 million to $1.1 million.
The community is divided on whether it is a good move or bad. “Sushi exit scam. Incredible. And trying to pretend to be nice. When dealing with magic internet money, the good projects have strong founders or strong early adopters. May sell some at the top, never cash out,” said trader and economist Alex Kruger.
impressed by the network effects and $ poured into, but generally ive been a Sushi skeptic, if your vision was to flippen uniswap, why do you need 10% of the supply? that and few big farmers that should not be named also owning significant supply made it unattractive to me https://t.co/O8knXznHpa
— CL (@CL207) September 5, 2020
Some even called out exchanges for listing these tokens while others argue that Binance-like exchanges actually give the opportunity to long or short.
“I don't know what is worse…An ICO company taking 20,000 Ether and not making anything for 3 years and watching their token go down -99%…Or SUSHI founder selling all his holdings for 20,000 Ether to crash the price -99% only two weeks after it was created,” said trader Jacon Canfield.