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Sushiswap Founder Reportedly Exit Scams as Sushi Token Price Tanks

The anonymous founder of Sushiswap has reportedly exit scammed after converting all of his sushi tokens to ETH on September 5. Reports of the alleged scam came a few days after the sushi token, which forked from the Uniswap protocol, went up in value to $10 in just 24 hours.

A Twitter user Spensernoon first made the allegations.

Sushiswap Founder Reportedly Exit Scams as Sushi Token Price Tanks

However, in a series of seemingly convoluted tweets, Chef Nomi, the self-professed creator of Sushiswap, has denied the allegations. The creator tweeted:

People asked if I exit scammed. 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 Sushiswap creator then compares his actions to what Satoshilite (Charlie Lee creator of Litecoin) did and how “Litecoin had no problem surviving.”

Still, Chef Nomi appears to justify his actions insisting he deserved the ETH:

“Maybe you don’t think I deserved that ETH? I think my contributions justified that. I wrote the migration code. I did all the audits. I coordinated the largest LP pools ever. I created a large community. I sprung up 100s of LP scam projects. All in one week.”

The Sushiswap creator also makes an effort to remind his detractors all the work he has done alone. The creator intimates that the token’s price volatility has created unwanted pressure.

“And that is what I do. I created (an) idea. I created (the) community. I did it best when I don’t (sic) have price under pressure. And if you believe in the community. You believe in the idea. You stay. If not, you are free to leave. It is an open experiment. No strings attached,” said the defiant creator.

Throughout the rest of the tweets, the founder casts his actions as benign while complaining that “all I received was blaming and FUDing.

The sushi token was listed on Binance September 1 and according to reports, the Defi liquidity provision platform had managed to have funds worth $1.2 billion under lock. Still, the token price began to plummet, dropping 60% (in 24 hours) to $1.50 at the time of writing.

Meanwhile, the ethereum (ETH) token appeared to take a cue from plummeting defi tokens after dropped 17% to $320 during the same period. The trend also appeared to be the same with many other defi coins like YFI, LEND, and LINK.

The Chainlink token LINK similarly dropped by a double-digit figure of 19.7% to $10.19 while the Polkadot token went down by 28% to $3.83.

However, the rest of the market appears to have incurred losses averaging 6% or less. Bitcoin dropped below $10,000 during the same period.

What do you think of the alleged Sushi exit scam? Share your thoughts in the comments section below.

Tags in this story
Bitcoin, Chef Nomi, DeFi, ETH, Exit Scam, FUD, liquidity provision platform, litecoin, Price Volatility, Sushi Swap, Uniswap’s liquidity pool

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