Sushiswap is all the rage within the cryptocurrency community right now. The protocol that’s intended to be a fork of Uniswap had all eyes turned to it as the lead developer dumped all of his tokens on the market, essentially crashing the price of its native SUSHI token by more than 50%.
However, since then, the lead developer has transferred control over the protocol to the CEO of FTX, which was seen as a boost of confidence by the community. Consequently, the price surged.
Sushiswap Lead Dev Transfers Control to FTX CEO
Yesterday, CryptoPotato reported that the lead developer of Sushiswap, known for his Twitter handle Chef Nomi, cashed out his SUSHI tokens for ETH, dumping them on the market.
This caused a market-wide reaction within most of the DeFi coins. SUSHI’s price tanked by more than 50% while the entire space suffered a blow.
Today, however, new events unfolded. In a tweet from a few hours ago, Nomi said that he has transferred timelock admin control to the CEO of the popular cryptocurrency derivatives trading platform, FTX.
Sam Bankman-Fried, CEO and Founder at FTX, laid out a plan on how the protocol will continue with its development.
Starting off, to keep things completely decentralized, he’s transferring the admin control to a multisig account, and there’s already a vote going on for that.
In a detailed Twitter thread, the CEO has revealed his overall vision of the entire situation and the project itself. One of the more interesting bits was the part where he said that “they” are a significant fraction of the current SUSHI/ETH pool.
He also said that he’s prepared to airdrop 5 million SUSHI to the community if Nomi gave up control over the protocol, which he did.
13) Second, if he does so, the offer to build another copy of it on Serum — while keeping the current version on Ethereum–still stands.
And in fact there’s more. Nomi sold 5mm SUSHI from the dev pool.
If the above happen, I will personally return 5mm SUSHI to the community.
— SBF (@SBF_Alameda) September 6, 2020
SUSHI Price Gains 190% As a Result
This has had a positive impact on SUSHI’s token price as well. The cryptocurrency dropped to a low of $1.13 on Binance.
However, since Nomi transferred to control over the protocol to FTX’s CEO, the price has picked up. In a massive green candle, the price reached an intraday high of $3.3, charting an increase of about 190% in a few short hours.
It appears that the community is taking the control transfer to Sam Bankman-Fried as a serious boost in confidence. Meanwhile, irrespective of everything said above, the total value locked in Sushiswap is just shy of $1 billion.