SUSHI Token Price Tanks As Founder of DeFi Protocol SushiSwap Sells 100% Holding In Alleged Exit Scam
The pseudonymous founder of Decentralized Finance (DeFi) protocol SushiSwap - Chef Nomi - sold all of his SUSHI token holdings and swapped for $10 million worth of ETH, leaving the community in a storm.
Over the weekend, the SushiSwap founder withdrew 2.5 million SUSHI from the decentralized exchange while exchanging 18,000 ETH worth $6 million. Later, he also removed an additional 20,000 ETH from the same liquidity pool.
SushiSwap came into existence with a fork in the popular Uniswap exchange. The SUSHI tokens were listed in Binance on September 1 last week. As per reports, the SushiSwap DeFi liquidity provider had earlier managed to have funds worth $1.2 billion locked.
However, after doubling just a day after its listing, the SUSHI token price has lost 60% in the last five days going below $2 on Sunday, September 6. That was also a mounting criticism against Chef Nomi for allegedly controlling nearly half of the coins in the system.
There was a massive community backlash after news emerged that Chef Nomi sold his entire SUSHI stake. However, in a series of tweets, the pseudonymous SushiSwap creator denied allegations. He wrote: “People asked if I exit scammed. I did not. I am still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure we have a successful migration”.
Instead he further went to compare his actions with Litecoins Charlie Lee and explained that how Litecoin survived even after Lee exited.
“I did the recent move because I care about the community. I'm taking IL for you. But all I received was blaming and FUDing,” he wrote. “Here’s what happened. The devshare part of me. I converted them to $ETH. I stop caring about price and I will focus on the technicality of the migration”.
Further justifying his actions, Nomi said that he deserved all of the ETH he cashed out of the liquidity pool. “Maybe you don’t think I deserved that? 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 one week,” he wrote.
At press time, the SUSHI token is trading at $2.97 an is up over 10% in the last 24 hours. Currently, Bankman-Fried controls the SushiSwap contract. He has said that he further plans to move the contract to a multi-sig contract until the protocol can be fully decentralized by the SushiSwap Liquidity Pool token holders.