SushiSwap (SUSHI), a fork of Uniswap created by controversial developer “Chef Nomi”, was handed over to FTX CEO Sam Bankman-Fried on September 6 in an unexpected takeover. The move came after SUSHI fell from $ 9.5 to $ 1.13 in just five days.
4 hour SUSHI price table. Source: TradingView.com
Creator controversially sold around $ 13 million in development funds, causing stock market crash
The transfer of the project to the reputable SBF comes after Nomi allegedly withdrew 20,039 ETH and 2,558,644 SUSHI from the development fund. The capital of the development fund was supposed to be used to finance the development of the project.
Spencer Noon, the head of DTCC Capital, was one of the first to spot the sale of SUSHI tokens by Chief Nomi. He wrote:
“The anonymous founder of SushiSwap sells all of his sushi. WHO COULD POSSIBLY HAVE PREDICTED THIS ?!
Acknowledging the community’s outrage, Chief Nomi said he was “not coming out of the scam”. He claimed he deserved the development fund when the project was created.
“People asked me if I quit the scam. I do not have. I’m still there. 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, ”he said.
But the main developers of the decentralized finance (DeFi) space were not convinced. Andre Cronje, developer of Yearn.finance, who was praised for the transparent and decentralized launch of YFI, asked:
“What do you mean” without me “? Are you leaving the project? If so, do you return the development funds? All you’ve done so far has been to hand over a token built from the Uniswap protocol. Weren’t the funds meant to develop further? Are you not that developer? “
As SUSHI continued to dive, SBF took over the protocol, to which the community responded positively. SBF said the keys from SUSHI would be transferred to a multi-sig, which would then become decentralized.
SBF also criticized Chef Nomi’s actions but said if Nomi does not resign Sushi could collapse. He summed up the whole debacle as follows:
“A) Nomi sucks and hurts the community
b) Sushi shows promise as a dynamic, community-built AMM
c) If Nomi does not resign, it’s over for Sushi.
d) If Sushi add a division on the serum, we will give 5mm SUSHI to the farmers
e) Anyway, the MAs are coming to Serum. “
Prior to the “acquisition” of Sushi by FTX and SBF, SUSHI was on its way to maybe zero. It had fallen 88% in five days without any clarity on the future of the project.
Industry executives and analysts remain generally positive about the recovery. Arthur Hayes, CEO of BitMEX, said:
“Please save me from a bad $ SUSHI SBF investment. He is our new chef.
Su Zhu, CEO of Three Arrows Capital, suggested he supported the takeover.
“Love it, and ETH needed it at 320,” Zhu commented.