Sushi token lost 80% of its value over the weekend due to the actions of Chef

The project administrator preferred to transfer the tokens to Ethereum.

Over the weekend, the assets of investors in the popular DeFi protocol SushiSwap fell in value by more than 80%. The token price dropped from $ 6.04 fixed on Friday to $ 1.08 (at the time of writing).

SushiSwap Token Chart

The coin’s rate went down against the background of the sale of a large batch of tokens by the platform administrator – an anonymous person hiding under the pseudonym Chef Nomi. According to Cinneamhain Ventures partner Adam Cochran, a project representative sold $ 27 million worth of cryptocurrency for Ethereum.

SushiSwap is a fork of another popular DeFi project – KIMCHI. The new protocol appeared at the end of August. Its representatives were able to attract the attention of crypto farmers, who try to earn as much money as possible by investing in DeFi projects. Thanks to the attention of the community representatives, the capitalization of SushiSwap has shown active growth. The Chief took advantage of this – he removed the assets from the protocol.

According to Adam Cochran, the platform administrator used funds from the developer fund. Earlier, Chief Nomi promised not to touch the assets. It is noteworthy that Adam Cochran warned investors that a protocol representative could implement such a scenario.

Currently, the control of SushiSwap is in the hands of the founder and CEO of FTX crypto exchange. This was announced by the Chief himself. Recall that the previously popular Binance exchange bought a stake in the FTX platform.

Despite the confusion, SushiSwap is still on the DeFi leaderboards, with a capitalization of $190,676,236. At the time of writing, the project is ranked 16th in the CoinMarketCap’s decentralized finance marketplace rating. At the same time, the cost of the token increased by 64.37% per day.


Data: CoinMarketCap

Chef Nomi’s act became the reason for criticism of the project from many members of the crypto community. At the same time, some investors drew attention to the fact that earlier other representatives of popular startups acted in the same way. For example, one of the co-founders of Ethereum, Vitalik Buterin. In 2016, the developer admitted that he sold part of his ETH. According to him, this act became part of the financial planning scheme.

Crypto community members noted that the sale of assets could also be part of the plan for the DeFi protocol administrator.

We will remind, recently Vitalik Buterin criticized the work of crypto farmers. In his opinion, DeFi projects that are so popular with users resemble ordinary Ponzi schemes (pyramids). It is noteworthy that earlier Ethereum was also accused of a scam. For instance, the famous cryptographer Adam Beck, who is considered by many to be the creator of bitcoin, sticks to this opinion and says that Ethereum is also similar to the Ponzi scheme.

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