SushiSwap (SUSHI), a fork of Uniswap created by controversial developer “Chef Nomi”, was delivered to the CEO of FTX, Sam Bankman-Fried, on Sept. 6, in an unexpected acquisition. The decision was made after SUSHI fell from $ 9.5 to $ 1.13 in just five days.
SUSHI price chart in 4 hours. Source: TradingView.com
The creator controversially sold about $ 13 million to development funds, causing a market crash
The project will be handed over to the renowned SBF after Nomi reportedly withdrew 20,039 ETH and 2,558,644 SUSHI from the development fund. The capital from the development fund should be used to finance project development.
Spencer Noon, the head of DTCC Capital, was one of the first to see Boss Nomi sell SUSHI tokens. He wrote that:
“The anonymous founder of SushiSwap sells all of his sushi. Who could have predicted that ?!”
Recognition of community outrage, Chef Nomi He said no “got out of the fraud”. He claimed he deserved the development fund for starting the project.
“People asked me if I got out of the scam. I didn’t.” I am still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure that we have a successful migration“, said.
However, prominent developers in the field of decentralized finance (DeFi) were not convinced. Andre Cronje, the developer of Yearn.finance, who was praised for the transparent and decentralized start of YFI, I ask::
“What do you mean” without me “? Are you leaving the project? If so, will you return the development funds? All you have done so far was pass in a token that was created from the Uniswap protocol. Shouldn’t the funds be used for further development? Aren’t you that developer? “
When SUSHI continued to crash, SBF took over the protocolto which the community responded positively. SBF said that SUSHI’s keys would be transferred to a multi-sig which would then be decentralized.
SBF also criticized boss Nomi’s actions, but said so If Nomi doesn’t back off, sushi could collapse. Summarized the whole debacle like this:
“A) Nomi sucks and hurts the community
b) Sushi holds promise as a dynamic, community-built MMA
c) If Nomi doesn’t retire, sushi will be over
d) When sushi adds a serum department, we give farmers 5mm SUSHI
e) In any case, MMAs get into the serum. ”
The industry reacts
Before the “takeover” of Sushi by FTX and SBF, SUSHI was on the way to possibly zero. It was down 88% in five days with no clarity on the future of the project.
Industry executives and analysts generally remain positive about the acquisition. Arthur Hayes, the CEO of BitMEX, said::
“SBF, please save me from a bad investment from $ SUSHI. You are our new Master Chef.”
Su Zhu, the CEO of Three Arrows Capital, suggested that the acquisition be approved.
“I love it and the ETH definitely needed that at 320”, commented Zhu.
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