Is SushiSwap an Exit Scam?
After SushiSwap founder ‘Chef Nomi’ sold his SUSHI tokens, crypto users have accused the mysterious founder of scamming users.
SushiSwap’s SUSHI token holders were left holding the bag this weekend after ‘Chef Nomi’, the project’s pseudonymous founder, suddenly sold $13 million worth of the tokens. The apparent financial exodus from the project has led some to decry the automated market maker (AMM) as an exit scam.
The selloff contributed to a significant drop in the value of the tokens, which peaked at $11.27 on Tuesday and fell to $1.21 on Sunday, a decrease of roughly 90 percent. At the time when Chef Nomi sold his tokens, SUSHI immediately dopped from $4.44 to $1.21.
At press time, the value of the tokens had recovered to $2.75, making the drop slightly less severe.
Despite Chef Nomi’s selloff, he has pledged to stick with the protocol, and said that the decision to sell was well within his rights as the platform’s founder.
“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,” he said, adding that Charlie Lee did a similar thing with Litecoin. Continue Reading