This week has been great for SushiSwap’s leading developer, not so much for the token hodlers. A few hours ago, Chef Nomi, the anonymous character behind the project, sold all his tokens and cashed out.
The self-proclaimed “head chef” sold millions SUSHI tokens over the weekend.
Money is a “Distraction”
Following what many call a rug pull, the token’s price has dropped more than 50%.
The move caused strong reactions within the community, especially from critics and analysts who rushed to call the Chef Nomi’s move a kind of exit-scam, especially considering that the project had been listed on Binance, gaining greater exposure among crypto traders and yield farmers.
Cool $13M exit scam. No wonder the market is nuking. https://t.co/XFRhBWfM3b
— LL CAPO DI TUTTI I CAPI (@LLLuckyL) September 5, 2020
Chef Nomi responded quickly to the criticism using the Charlie Lee card. He explained that he had sold his stash to stop worrying about price and focus 100% on the code —in fact, he explicitly mentioned Charlie Lee and his decision to sell his LTCs before the dump.
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.
— Chef Nomi #SushiSwap (@NomiChef) September 5, 2020
Don’t Play with (or farm) Magic Internet Money
Sushiswap was born as a Uniswap fork, a token swap protocol built on Ethereum. Uniswap awards tokens to participants for providing liquidity in specific pools. SUSHI enables investors to deposit their Uniswap LP Tokens into its smart contract and begin earning Sushi tokens.
In a few days, the protocol became one of the most popular DeFi topics in the community, not only among yield farmers but also among those who simply wanted to participate in the latest hot DeFi product, even if it just followed the trend set by Yam, Tendies, and other projects named after different meals.
However, considering that even the team behind Sushi said it was “one of the most hyper-inflated tokens in its first ~15 days period,” it’s not surprising that, from a financial point of view, they wanted to detach themselves and put less skin in the game.
Better leave that to the traders. The Chef’s mission will be to write code now… but he’s a lot richer.