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SushiSwap, the project is in total chaos

What could happen now?

Sushi Swap he's been making a lot of talk over the last few days. The project, born as fork of UniSwap, made its debut a few weeks ago, but it would be an understatement to define intense.
Le fibrillations born after the decision of its creator, Chef Names, to sell the amount of tokens in its possession, were in fact the basis of the criticisms of some well-known operators in the cryptographic sector, who did not hide their point of view on decentralized finance (DeFi). Which bases its severity precisely on the events of SushiSwap: a real scam, or rather a bubble. Which would be destined to erupt soon, leaving many victims as a souvenir.

SushiSwap - SushiSwap, the project is in total chaos

SushiSwap: what is happening

The SushiSwap story is quite indicative of what can happen when there is no precise development plan behind a token. After making his big debut, in fact, Sushi has given life to one dramatic decline, in the order of 73%. Caused by the sudden decision taken by Chef Nomi, one of the two creators of the project (the other is 0xMaki), to sell the digital cash in their possession. A move which could only be misinterpreted by the market. The devaluation of SushiSwap was the logical corollary of the same.

Now Chef Nomi goes back

The last act of this comedy, at least for now, has been announced by Etherscan. According to which Chef Nomi would have relocated 38mila ETH to the original developer fund portfolio.
Chef Nomi himself confirmed what happened on Twitter, stating that any reward he deserves for the development of SushiSwap will have to be agreed within the community gathered around the project.
This is a further remedial move, considering how previously the co-founder had decided to transfer ownership of the project to Sam Bankman-Fried, the CEO of the crypto exchange FTP extension.

The market reaction

The announcement of Chef Nomi's decision allowed SushiSwap to recover a part of what was previously sold. In fact, its price went from 2,26 to 2,70 dollars, with a recovery of 16%.
A trend which could be confirmed over the next few days. The problem triggered by Chef Nomi's behavior, however, is destined to remain in the background.

SushiSwap confirms doubts about decentralized finance

The sensational fluctuations that followed the moves of the founder of SushiSwap, however, triggered, or rather relaunched, the discussion on decentralized finance. Over the last few weeks it has become a real craze. With projects which have recorded a resounding success as soon as they were launched.
A mania that brought to mind what happened in 2018. The reference is naturally to bubble of ICO. Even on that occasion, many investors decided to trust anything related to cryptocurrencies, without exercising the necessary critical spirit. The result was disastrous: a large number of projects disappeared in the short space of one morning, taking with them the money of those who believed in them.
Of course, the hope is that this is not the case this time. DeFi, however, is increasingly taking on the typical appearance of a bubble. The explosion could be disastrous, as recalled by Ryan Selkis, the founder of Messaria. Who used very harsh words to try to warn potential investors. It remains to be seen how his words will be received.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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