DeFi Venture SUSHI Taken Over By FTX CEO Sam Bankman-Fried September 6, 2020 September 6, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsSeptember 6, 2020 by Kelly Cromley

DeFi Venture SUSHI Taken Over By FTX CEO Sam Bankman-Fried

SushiSwap (SUSHI), created by forking Uniswap by belligerent coder “Chef Nomi,” was taken over by FTX CEO Sam Bankman-Fried (SBF) earlier today, in an unanticipated move. The steps were taken after SUSHI declined from $9.50 to $1.13 in a span of five days. The takeover of the venture by renowned SBF has happened after Nomi supposedly took back 20,039 ETH and 2,558,644 SUSHI from the coders’ fund. The tokens held in the developer fund were meant to be utilized for the advancement of the venture.

Spencer Noon, chief of DTCC Capital, was the one to notice dilution of SUSHI tokens by Chef Nomi. He revealed the info through the following statement:

“Anonymous founder of SushiSwap sells all of his Sushi. WHO COULD HAVE POSSIBLY PREDICTED THIS?!”

Recognizing the community’s anger, Chef Nomi clarified that he is not involved in “exit scam.” He justified the sell off by saying that he was solely responsible for the realization of the venture and so has the right over the development fund.

But notable coders from decentralized finance (DeFi) arena were not impressed. Andre Cronje, developer, known for his transparency and decentralized roll out of YFI queried as follows:

As SUSHI remained in a downtrend, SBF gained control over the covenant and the crypto community reacted positively. SBF stated that the keys of SUSHI would be shifted to a multi-sig, before being decentralized. SBF also condemned the behavior of Chef Nomi but stated that if Nomi does not resign, Sushi could go for a toss. He briefly explained the entire fiasco as follows:

Earlier to the Sushi “acquisition” by FTX and SBF, the value of SUSHI was on course to hit virtually zero. It had declined 88% in five days with no limpidity in the future of the venture.

In general, crypto executives and analysts have a positive view about the acquisition. Arthur Hayes, the CEO of BitMEX, stated:

Su Zhu, the CEO of Three Arrows Capital, also expressed his support for the takeover:

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.