DeFi protocol Smart Contract Analysis, SushiSwap, revealed that Up to $ 27 million of the native token is in a management wallet that can be disposed of without notice.
The data analyst and partner of Cinneamhain Ventures, Adam Cochran, delved deep into the administrative structure of the SushiSwap wallet, A protocol that has gained a lot of strength and a billion dollars in liquidity in the past few days.
Uniswap clone analysis, arose from a epiphany from Twitter user Sasa (@ cicnos1) that the ‘Deployment Wallet’ contains sushi tokens worth around 27 million US dollars that could be thrown into the SUSHI / ETH pool.
Cochran said the first time he looked at the smart contract, he assumed the developer’s fund was flowing into a wallet that was locked by a governance vote or timeout.
1/6 As far as I can tell $ SUSHI Guys are sitting on their own token worth $ 27 million that could be dumped or used to dump in exchange for LP tokens.
When I first looked through the contract, I assumed the developer fund was going to a wallet that was locked by government vote or time out. https://t.co/OQZ4QciqXw
– Adam Cochran (@AdamScochran) 1st September 2020
However, their analysis revealed that it was actually just a generic wallet for which the anonymous administrator of SushiSwap or ‘Chef Nomi’as it is known on Twitter, has the cryptocurrency keys. This means that investors could be dumped without warning.
The fintech analyst added that taking in $ 27 million from a project whose valuation was currently so diluted may not be considered entirely unacceptable.
“If Nomi announced it and even took 10% off the table, people would likely agree.”
However, if you don’t touch this wallet, more questions will arise. Given that the chef clearly realizes that the project is worth no more than $ 2 billion and that token prices are unlikely to rise any further. In fact, they withdrew 30% of ATH on Tuesday.
Give Nomi the benefit of the doubt Cochran suggested that it could simply be an oversight in the ecosystem.. However, he said the funds should be moved to a blocked governance voting portfolio immediately.
Now that a few days have passed, sushi is old news. with a new project called “Kimchi”that split off from the protocol, which was itself a spin-off from Uniswap. According to reports Kimchi had banned $ 500 million a few hours after launchThough that number was $ 175 million at the time of writing, according to the protocol’s own control panel.
Like his brother sushi, The platform offers a reduction in trading fees to users who lock their tokens on a timed smart contractalthough there is very little information about it at the moment.
In statements too BNN Bloomberg, the CEO of Galaxy Digital, Mike Novogratz, suggested that The DeFi sector was spiraling out of controlhaving regard to the ICO boom in 2017 and the “speculative frenzy” over Tesla.
“There are new projects that do really interesting things, but they get liquidity so quickly that they change at a rate I have never seen in the markets.
Novogratz cited the sushi project, adding that the “irrational exuberance” is a little worrying and could be another bubble about to burst.