You must have heard about the famous book or probably read it. It had a fancy title "The monk who sold his Ferrari". Though, I have not read that book but I do recall the title as it is very unique.
The title of this post is in-part inspired by the title of that book i.e:
The Chef 👨🍳 who sold his Sushi 🍣
But, you may ask me "Wait a minute, what does a Chef and his Sushi got to do with crypto?".
I would say that this is a valid question. So, here is a little backdrop as to what Sushi is and who is it's Chef?
What is Sushi or $SUSHI and who is it's Chef?
SUSHI is the native token of SushiSwap, a DeFi or decentralized finance protocol which is a fork of the very popular Uniswap Protocol.
The creator of the Sushi Protocol is an anonymous person that goes by the twitter name and handle "Chef Nomi" or @NomiChef
Uniswap is a decentralized exchange or AMM Automated Money Market DEX for non-kyc/ anon coin swapping that was launched on the Ethereum network in November 2018. The most popular wallet interface to access it is a Chrome extension called Metamask
Uniswap saw trading volumes of $953.59 million on 1st Sep 2020 which was about 50% higher than Coinbase pro, which is the largest centralized crypto exchange in the United States.
Therefore, what SushiSwap is targeting is pretty big. The difference between Uniswap and SushiSwap is that Sushiswap promises its liquidity providers its governance token $SUSHI which will be distributed at 10 times the base rate of 100 SUSHI per block, translating into 1,000 Sushi to be generated per block, so as to attract early farmers.
While Uniswap distributes 0.3% of trading fee to its liquidity providers in a given pool. SushiSwap, on the other hand, hands out 0.25% and award 0.05% in the form of Sushi tokens, which can be bought or sold and used to exercise governance. Many took advantage and are staked their tokens(to provide liquidity to the exchange) to earn SUSHI, as the token’s price continued to appreciate and went on to hit and all time high of $15 after Binance listed it.
Everything was going on nicely for SushiSwap and its token $Sushi until today, when suddenly out of nowhere the Chief Developer or Founder aka Chef Nomi decided to sell his holdings of the Sushi Tokens in the open market without the approval of the team and swapped them to Ethereum. Below is the screenshot of the transaction.
This triggered a massive sell-off in the price of the Sushi token and it fell 70% falling to make a low of $1.40 (still not $0 though not sure why)
Crypto Twitter was quick to call it an EXIT SCAM
In response to such allegations Chef Nomi tweeted that he did nothing wrong. Even Charlie Lee of Litecoin sold his stake but Litecoin developement and the community did not die. He also said that new devshares would not be under his control rather under multisig contract.
There is also a proposal posted here on what Chef Nomi should do in order to negotiate and make things better with the community and his dented reputation.
https://snapshot.page/#/sushi/proposal/QmXXQiooUimGRBnDuYDVkGyG4LGBJ9FkdSFrTyrZ2wUaSx
He seems to be still working on the project which is evident from this tweet
And his pinned tweet suggests he might be willing to negotiate. You never know.
And despite all the negativity some people are posting some humor about $SUSHI
Chef Nomi has said that the Liquidity migration and other pending work will be completed in 40 hours and come Monday we will see its progress.
Also the token has still not fallen to $0. Well, no one knows how this will pan out. But let's just wait and see how this fluid situation unfolds during the next few hours.
We are witnessing history here folks while crypto twitter has its eyes stuck on Chef Nomi's twitter account
UPDATE I:
It seems Chef Nomi is back and he has transferred control of the contract to the CEO of FTX Exchange - I guess he was under pressure from the community as a lot of people's reputation is at stake including big big names and also because he was doxed by someone yesterday.
There seems to be some short covering and longs opened on $SUSHI token based on this news as the market now knows the founder rather than being anonymous and sketchy earlier and some lost confidence in the project being won back. Although it seems Chef Nomi has kept his cashed out $13 million. We will see if he puts that money back into the developer fund under a multi-sig or not.
Some people are calling it an acquisition even, let's see how the situation evolves
At time of writing the price of SUSHI token on binance is trading at $2.63 which is more than a $1.50 jump from lows of $1.13
Check LIVE SUSHI Price here: https://www.binance.com/en/trade/SUSHI_USDT?ref=39275169
(ref code)
UPDATE: II
SushiSwap is LIVE and this is their official Twitter Account that you can follow for updates: https://twitter.com/SushiSwap
There is also a proposal to cut the output of new $SUSHI and add a lock-up period to encourage participants to stay in the ecosystem longer.
It has been put up for voting here: https://snapshot.page/#/sushi/proposal/QmUKcN1w28AkioVEmegtrRrPsiYNnaTo2DuPDbRaeWdTFu
SushiSwap hasn't been live for long but it has already been successful in draining 70% liquidty from Uniswap to its platform according to Alex Saunders who tweeted the below graphic as a comparison:
Liquidity at Uniswap
Liquidity at SushiSwap
In other news, Hayden Adams of Uniswap is reportedly planning to launch an incentive token on Uniswap and is possibly bringing a UI update as well which he hinted via this tweet
on twitter.https://twitter.com/haydenzadams/status/1303695216680067072
- haydenzadams
That is all folks for the SushiSaga. I have updated the article twice and will write another post once we see more drama in the AMM space.