Members of the cryptocurrency community are crying foul after the anonymous founder of Decentralized Finance platform Sushiswap sold off all of their $SUSHI tokens in what is being labelled as an exit scam.
Head of DTC Capital Spencer Noon shared a screenshot of the transaction on Twitter that shows that over 2.5 million $SUSHI tokens were swapped for just under 18000 ETH tokens:
This latest development comes after a tumultuous fews days in the DeFi space, after Sushiswap announced that its community had approved a migration to its own platform from Uniswap – the very platform it was forked from to be created.
The migration of Sushiswap from the Uniswap automated market maker platform would see around $180mln worth of liquidity move from the latter platform, according to reports from Cointelegraph on Friday. The ETH/SUSHI trading pair accounted for that $180mln valuation.
SushiSwap has over $1.1bln of value locked in its liquidity pools and data provider Sushi Board shows that this still accounts for around 74% of value on the Uniswap platform.
Despite its massive popularity, the project has been subject of plenty of skepticism given that its protocol was unaudited when it went live. Blockchain security and analysis firm Quantstamp went as far as releasing a security review of Sushiswap’s protocol on Github, identifying 10 low to medium risk findings.
Sushiswap ‘Chef’ claims move will help focus on development
The anonymous founder of Sushiswap, who goes by the alias of @NomiChef on Twitter has been active over the past few hours in an effort to allay concerns over the sale of $SUSHI tokens in their possession.
NomiChef’s first Tweet on Saturday looked to explain the process of the migration from Uniswap, which the anonymous creator claimed would necessitate converting all the $SUSHI tokens in the devpool:
Following what can only be described as a massive outcry on Twitter, NomiChef then suggested that by swapping out their $SUSHI tokens for $ETH, the creator would be able to focus on the technical aspects of the platforms migration from Uniswap:
“I did the recent move because I care about the community. I’m taking IL for you. But all I received was blaming and FUDing. Here’s what happened. The devshare part of me. I converted them to $ETH. I stop caring about price and I will focus on the technicality of the migration.”
NomiChef then directly hit out at claims of an exit scam, claiming that efforts will now be directed at the technical parts of the project:
“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.”
The anonymous account’s final tweet tried to assuage negative sentiments by stressing that the migration and development of the Sushiswap platform will continue, despite the massive swap of tokens.