The SushiSwap saga that began several weeks ago with a hugely popular new automated market maker (AMM) protocol has continued to get more complicated, and a bit more strange.
The trouble started over the weekend, when the pseudonymous founder of SushiSwap, known only as ‘Chef Nomi’, suddenly made the decision to sell all of his SUSHI tokens. A move that caused the token price to suddenly take a significant dive.
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The token had already been sliding down before Chef Nomi sold off his coins: after peaking $11.27 on Tuesday, September 1st. By Friday, the SUSHI token price had dipped to roughly $4.50; when Chef Nomi sold his tokens on Saturday, SUSHI quickly dopped from $4.44 to $1.21, where it bottomed out.
All told, the price slid down roughly 90 percent from Tuesday to Sunday. By press time, the price had recovered to $2.84, softening the blow a bit: at $2.84, SUSHI is 74 percent below its peak price.
Chef Nomi’s Decision to Cash Out Led Many to Cry ‘Exit Scam’
The decision by Chef Nomi to cash out of the project also allegedly led many to believe SushiSwap was some kind of an ‘exit scam’, where a protocol is built for the sole purpose of building up a token price before the scammer sells all of the tokens, abandons the project, and makes off with all of the cash.
For example, crypto lawyer Preston Byrne, who practices at Anderson Kill Law, advised Twitter users that “If you lost money in the SushiSwap exit scam, file a report with the FBI and lawyer up.”
If you lost money in the SushiSwap exit scam, file a report with the FBI and lawyer up.
— Preston Byrne (@prestonjbyrne) September 6, 2020