Attempts to replicate the success of the non-custodial exchange SushiSwap by Pizzafinance.com and Hotdogswap turned into a classic Pump & Dump. Less than a day after listing on Uniswap, their native tokens actually depreciated.
Hotdog, like SushiSwap, is marketed as a fork of Uniswap and promises liquidity providers extremely high annual percentage yields (APY) as well as distribution of governance tokens.
Six hours after its launch on Uniswap, the HOTDOG price has climbed to $6,234. In the next three hours, it collapsed to one cent, while the fall from $4000 took about five minutes.
In a more concise form, the Pump & Dump scheme is implemented in PIZZA tokens. In the first hour of trading, the price of the coin jumped to $372, the next – it fell to $3.7. Subsequently, the token dropped in price to $ 0.25. The project also promises six-digit APYs.
In both cases, the fall from ATH was 99.99%.
Another similar meme project, Kimchi Finance, repeated the dynamics of HOTDOG and PIZZA with the difference that at the time of writing its token still has some value. On the fourth day after the listing, KIMCHI is valued at $1.41, which is seven times less than the all-time high reached on the first day of trading ($9.89).
Creation of scam projects on Uniswap is facilitated by a free listing practice that allows anyone to deposit a coin into the protocol.
The expert cited graphs of the collapsed “gastronomic” tokens and noted that he counted more than a dozen similar examples over the past month.
SushiSwap administrator urged not to draw any parallels with his platform. Chef Nomi made it clear that he plans to channel funds in the tokens provided for him for two audits and grants.