sushiswap founder

Sushiswap's 2 Million Token Airdrop: Founders Face Accusations of 'Making Defi a Joke Again'

Sushiswap’s new leader and FTX CEO Sam Bankman-Fried tweeted on September 12 that the promised 2 million token airdrop would go on as scheduled. The process was expected to last up to two hours or less depending on network congestion.

The airdrop caps an eventful week for Sushiswap that started with the reported ‘exit scam’ by co-founder Chef Nomi and the return of the $14 million worth of ETH.

After initially defending his actions that are believed to have caused the price of the decentralized finance (defi) token to crash, Chef Nomi made the surprise decision. Furthermore, the still anonymous founder issued an apology for his actions and said he “will let the community decide how much he deserve(s) as the original creator of Sushiswap.”

In response to this show of contrition, Sam Bankman-Fried paid tribute to Chef Nomi for this decision, while reminding his Twitter audience of the founder’s earlier good work. The FTX CEO added that part of the returned ETH will now be used to fund the scheduled buyback.

Since taking charge, Sam Bankman-Fried has helped to initiate changes aimed at assuaging investors, some of whom are reportedly contemplating taking legal action. Meanwhile, following this latest announcement about the airdrop, YFI creator Andre Cronje tweeted that events tied to the Sushiswap fiasco have not helped the cause of defi.

In his reply to Sam Bankman-Fried on Twitter, Cronje said:

“LOL. Thanks for making defi a joke again. One step forward and ten steps back.”

Cronje suggested that the Sushiswap team is copying from the 2017 initial coin offering (ICO) scam playbook. The YFI creator then provided what he terms as an ICO scam checklist. The list includes an “airdrop, buyback, insane salaries, large team allocation, forked geth (Uniswap).”

Interestingly, when Chef Nomi tweeted an apology, Cronje replied saying:

Less apology, more coding. Sushiswap needs you. Get back to work and build something that leaves a legacy. You chose Sushiswap over yourself, now just keep building.

In the meantime, the Sushi token has since partially recovered after dropping to $1.30 following Chef Nomi’s previous departure. At the time of writing, the token traded at $2.30. Despite the criticism, Sam Bankman-Fried and his team are confident that the surrendering control to the community pre-empts further events of developers making unilateral decisions.

What do you think of the Sushiswap airdrop? Tell us your thoughts in the comments section below.

The post Sushiswap’s 2 Million Token Airdrop: Founders Face Accusations of ‘Making Defi a Joke Again’ appeared first on Bitcoin News.

Sushiswap Creator Returns $14 Million After Community Cries Exit Scam

One week after the Sushiswap creator was accused of an exit scam, he has returned all of the coins he cashed out. The anonymous creator also apologizes to the community, including to Binance which came under fire for listing the sushi token.

Sushiswap Creator Says ‘Sorry’

The creator of Sushiswap, the anonymous Chef Nomi, has returned $14 million worth of ETH to the project’s developer fund. Chef Nomi tweeted Friday:

I have returned all the $14M worth of ETH back to the treasury. And I will let the community decide how much I deserve as the original creator of Sushiswap. In any currency (ETH/SUSHI/etc). With any lockup schedule you wish.

“To everyone. I fucked up. And I am sorry,” Chef Nomi further wrote. “I would like to apologize to everyone who I have caused troubles to. I was emotional, I was greedy, I was afraid. I made bad controversial decisions under pressure. And it hurt everyone. I failed your expectation and I am sorry.”

The Etherscan transaction posted by Chef Nomi shows that 38,000 ETH have been transferred. Following this news, the price of sushi token soared 25%. The token’s price stands at $2.67 at the time of writing. Sushiswap, just over two weeks old, is a decentralized finance (Defi) liquidity provision platform forked from Uniswap.

Sushiswap’s price chart showing a price jump after the creator announced that he had returned $14 million in ETH.

The former head chef of Sushiswap liquidated his sushi holdings on Sept. 5, causing a drop of more than 75% in the price of SUSHI. Many people in the crypto space call his action an exit scam. Then, on Sept. 6, Chef Nomi transferred control of the Sushiswap project to FTX exchange CEO Sam Bankman-Fried.

In a series of tweets on Friday, Chef Nomi explained that he “will continue to participate in the discussion and technical implementation of Sushiswap in the background.” However, he will neither have any control nor be part of the governance and will not take the spotlight. He wrote: “I hope that Sushiswap continues to evolve. Don’t let my mistake deter it from being a 100% community-run AMM. The success of Sushiswap will set a precedent for many more community-run projects. It has a lot of potential, don’t let my action alone fuck it up.”

Chef Nomi also apologized to crypto exchange Binance, CEO Changpeng Zhao (CZ), and Sorawit Suriyakarn, the co-founder and CEO of Band protocol. Suriyakarn has been accused of being Chef Nomi, which both parties have denied. “I am sorry that I may have caused you trouble,” Chef Nomi wrote. Binance and its CEO have been heavily criticized for listing the sushi token within days of its launch even though its founder is anonymous.

Adam Cochran, Partner at Cinneamhain Ventures, has proposed using some of the returned $14 million ETH to re-buy sushi tokens, Bankman-Fried tweeted.

Cochran also proposed to formally hire Sushiswap’s general manager and founder known as “0xmaki” to lead the project, noting that “Currently Sushiswap has no formal full-time team.” The proposal outlines that 0xmaki will be given a “one-time founders grant” of “500k SUSHI upfront, and 500k locked over a one-year period as a founders grant.” 0xmaki will also receive “A payment of 500k Sushi vested over two-years for continued work on Sushi.” At the current price of $2.67 per SUSHI, the upfront payment is more than $1.3 million, which many people on Twitter say is too much.

Do you think Sushiswap will recover fully? Let us know in the comments section below.

The post Sushiswap Creator Returns $14 Million After Community Cries Exit Scam appeared first on Bitcoin News.