Another day another dramatic Sushiswap headline. Last week we reported that the Sushiswap founder sold all his SUSHI tokens, then handed over the project to FTX CEO Sam Bankman-Fried. The sell off caused massive losses to the SUSHI price, and many in the community accused Chef Nomi of an exit scam.
Now, it seems that guilty conscience has caught up with Chef Nomi. Through his Twitter account, he announced that he has returned all of the 38,000 ETH he made from selling his coinsback to the treasury. The transfer has been confirmed on etherscan (Click on this link to see the transaction). Chef Nomi apologized for his behavior, and for shedding a negative image on the entire DeFi scene. He admitted that his actions almost destroyed Sushiswap, and expressed his gratitude to SBF for taking over control of the project and saving it by pulling off the migration. Chef Nomi then declared that he wants the community to decide how much of the $14 Million he deserves as founder and initiator of the project.
The drama around Sushiswap is currently one of the hottest stories in the crypto scene. Sushiswap is a fork of Uniswap, a well renowned liquidity pool DEX on the Ethereum blockchain. Uniswap works with no native tokens. Sushiswap copied Uniswap’s code, and introduced the governance token SUSHI. This token is given among other to users moving their liquidity from Uniswap to Sushiswap.
Then a few days ago came the bombshell . Chef Nomi withdrew all of his SUSHI tokens from the Uniswap pool and sold them for ETH. Shortly afterwards, he handed over control of the project to FTX’s SBF, who moved the liquidity migration forward by a few days. Chef Nomi came under heavy criticism for his actions from some of the big names in DeFi, such a Yearn.Finance developer Anders Cronje and Compound founder Rob Leshner. This might’ve been the tipping point for him to reconsider his actions.
It is hard to come to clear conclusions here due to Chef Nomi’s anonymity. Is the entire story authentic or just a PR stunt? Nobody know for sure (Yet?).
What’s the current status of the migration?
The migration of the liquidity pools from Uniswap to Sushiswap is completed. The result however was unexpected. The Sushiswap smart contracts are currently in control of $1.35 Billion worth of assets, compared to $800 Million on Uniswap. It will be interesting how the assets will be divided on both projects when it’s all said and done, and whether or not there’s enough room for both projects to succeed. The saga continues…