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.
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.
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.
— Chef Nomi #SushiSwap (@NomiChef) September 5, 2020
People asked if I exited scam. 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.@SatoshiLite did that and Litecoin had no problem surviving.
— Chef Nomi #SushiSwap (@NomiChef) September 5, 2020
But notable coders from decentralized finance (DeFi) arena were not impressed. Andre Cronje, Yearn.finance developer, known for his transparency and decentralized roll out of YFI queried as follows:
What do you mean “without me”? Are you leaving the project? If so, are you giving the dev funds back? All you did so far was hand over a token that was built off of @UniswapProtocol.
Weren’t the funds meant to further develop? Aren’t you that developer?
— Andre Cronje (@AndreCronjeTech) September 6, 2020
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:
16) TL;DR:
a) Nomi sucks and hurt the community
b) Sushi shows promise as a dynamic AMM built by the community
c) If Nomi doesn’t step down, it’s over for Sushi.
d) If Sushi adds a division on Serum, we’ll give 5mm SUSHI to farmers
e) Either way, AMMs coming to Serum
— SBF (@SBF_Alameda) September 6, 2020
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:
Please save me from a bad $SUSHI investment @SBF_Alameda. He is our new master chef.
— Arthur Hayes (@CryptoHayes) September 6, 2020
Su Zhu, the CEO of Three Arrows Capital, also expressed his support for the takeover:
love it, and $ETH def needed this at 320 https://t.co/i4AtdPyaOO
— Su Zhu (@zhusu) September 6, 2020
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.
