Welcome Bonus: Sign Up & Get Up to $150 in BTC

Get Started
Inside 12 hours of Sushi: Chef sells, community laughs, FTX founder gains Inside 12 hours of Sushi: Chef sells, community laughs, FTX founder gains

Inside 12 hours of Sushi: Chef sells, community laughs, FTX founder gains

with insights from Sam Bankman-Fried

Expect crypto to deliver even if youโ€™re not searching.

Inside 12 hours of Sushi: Chef sells, community laughs, FTX founder gains

Cover art/illustration via CryptoSlate

Expect crypto to deliver even if youโ€™re not searching. Over just 12 hours starting September 5, Uniswap fork SushiSwap saw its founder sell their holdings, to the community terming it a โ€œrug pull,” to the founder of FTX eventually taking over the doomed projectโ€™s private keys.

Sushi founder dumps tokens

On Saturday, โ€œChef Nomi,โ€ the anonymous founder of the SushiSwap project and issuer of SUSHI tokens, said they sold their holdings to โ€œstop caring about priceโ€ and instead โ€œfocus on the technicality of the migration.โ€

But instead of being heralded, the announcement was met with criticism from both the SushiSwap community and other industry observers. Some even suggested Chef Nomi had โ€œexit scammedโ€ after working for just two weeks on forked Uniswap code and ending up with $10 million worth of Ethereum after the sale.

However, Chef Nomi claimed there was no such intention of the project being a scam. They argued they would continue to develop SushiSwap into a better version of decentralized exchange Uniswap despite the selling.

FTX founder gains admin keys

In the hours since โ€” facing heat on Twitter and attracting criticism from Ethereum co-founder Vitalik Buterin โ€” Chef Nomi said they would transfer the projectโ€™s private keys to a worthy party; one that hopefully drives adoption, development, and the community further without SUSHI and SushiSwap ending up in the wastebins.

And thatโ€™s where FTX founder Sam Bankman-Fried stepped in. Bankman-Fried said on a tweet he was ready to temporarily take control. He added a diligent voting process will be carried out, one the broader crypto community could meet consensus on.

Nomi then transferred the control of SushiSwap to Bankman-Fried by handing over admin keys. “I hope SushiSwap does well without me,” they tweeted. “Again I did not intend to do any harm. I’m sorry if my decision did not follow what you expected.”

Governance to continue

At press time, Bankman-Fried holds the literal keys to SushiSwapโ€™s future. Over the next weeks, governance votes on the projectโ€™s immediate future shall be carried by a team of to-be-elected multisig holders.

Meanwhile, Yearn Finance founder Andre Cronje raised questions about Chef Nomi โ€œleavingโ€ the project, even as the latter had earlier said they would continue with SushiSwapโ€™s development after the tokens were sold.

For now, the Hollywood-worthy saga is closed. But you never know for sure when it comes to crypto.

Posted In: DeFi