Yesterday Chef Nomi, the pseudonymous creator of the Uniswap-like DeFi protocol, SushiSwap, transferred his control to the CEO of crypto exchange FTX, Sam Bankman-Fried. What happened?
The topic of conversation
Basically during the weekend the topic of conversation in the crypto community was centered on SushiSwap. If you took the weekend off or did not know what was happening, here we explain.
What is SushiSwap?
It is a fork of UniSwap carried out by an anonymous person under the name of ‘Chef Nomi’. The promise was to preserve the best of UniSwap and improve governance through a voting token called SUSHI.
The SUSHI token became one of the stars of DeFi: Its maximum market capitalization was $ 262.7 million on September 1.
It all started on Saturday, September 5, when rumors began to circulate on Twitter that Chef Nomi cashed in $ 13 million in developer funds for personal gain, causing the token to collapse by 88%.
In fact, the first accusation was made on Twitter by Spensernoon.
This clearly sparked the fury of the DeFi and crypto community on social media, especially Twitter.
However, the creator of SushiSwap completely denied the allegations that it was a scam. In this way, he compared his actions with what was done by Charlie Lee, creator of Litecoin, and how “Litecoin had no trouble surviving.”
In fact, Chef Nomi seems to have justified his actions by claiming that he deserved the ETH.
Maybe you don’t think I deserved that ETH? I think my contributions justified it. I wrote the migration code. I did all the audits. I coordinated the biggest LP Pools in history. I created a great community. I will unmask hundreds of LP scam projects. All in a week.
However, the justifications of the creator of SushiSwap do not seem to have been enough. Rather than defuse the situation, it appears that the creator tried to put out a fire with gasoline.
The fire spread throughout the DeFi community
Saturday night was marked by the fury of social media and constant pressure directed at the creator of SushiSwap. Consequently, on Sunday, in the face of tension, Nomi decided to hand over the administration keys to Bankman-Fried, who two hours earlier had tweeted: “Nomi sucks and hurts the community” and “If Nomi doesn’t retire, it’s over for Sushi ».
Obviously the acquisition improved the environment around the DeFi project and consequently the price of SUSHI increased within a few hours.
In this regard, Bankman-Fried thanked Nomi and exposed her plans for SushiSwap on Twitter. He noted that it will return power to the community once control is transferred to a multi-sig leadership controlled by community-elected leaders.
Meanwhile, Chef Nomi wrote on Twitter: «Hope SushiSwap does well without me. Once again, he didn’t mean to do any harm. I’m sorry if my decision was not what you expected. But I want to emphasize again and I did not mean to scam anyone. No LP is wasted at all. I kept all my promises.
However, at the moment it is unknown if Chef Nomi will return the money he withdrew from Uniswap.