SushiSwap administrator hands platform control to FTX founder

The administrator of the DeFi platform SushiSwap, “Chef Nomi,” announced the transfer of control to the founder and CEO of the FTX exchange, Sam Bankman-Fried.

I’m transferring control to @SBF_Alameda now. https://t.co/4Ih16CYCEo

— Chef Nomi #SushiSwap (@NomiChef) September 6, 2020

The head of FTX said he was still reviewing the transferred rights, but thanked Nomi for “doing what was necessary.”

The platform administrator sold half of the developers’ fund, assets worth $27 million in SUSHI tokens, and crashed the token price.

“I hope SushiSwap will do well without me. Again, I did not intend to cause harm. I apologise if my decision does not meet your expectations,” wrote Nomi.

Fantom Foundation technical adviser Andre Cronje responded by asking whether he would be willing to return $14 million to the developers’ fund if he were leaving the project.

What do you mean «without me»? Are you leaving the project? If so, are you giving the dev funds back? All you did so far was hand over a token that was built off of @UniswapProtocol.

Weren’t the funds meant to further develop? Aren’t you that developer?

— Andre Cronje (@AndreCronjeTech) September 6, 2020

Some users backed Cronje’s demand. Participating in the discussion, Sam Bankman-Fried argued that Nomi should return part of the funds.

Partner Adam Cochran of Cinneamhain Ventures suggested that the administrator had siphoned funds from the fund without the knowledge of other developers. He reached that conclusion based on the ultimatum issued by SushiSwap’s co-founder.

DAMN the $SUSHI saga gets better.

Cofounder calling out Nomi proving this was NOT planned and was Nomi taking funds without other devs knowing! https://t.co/BVxmW5r0F0

— Adam Cochran (@AdamScochran) September 5, 2020

Earlier Cochran warned that Nomi could at any moment dump the SUSHI held in the wallet he controlled.

Opinions on whether handing control of the platform to an exchange will benefit the project are divided in the community. Some noted that an experienced, well-resourced team could help SushiSwap overcome problems. Others pointed out that FTX is the largest holder of SUSHI, and, along with control of the protocol, this threatens centralisation of the platform.

The token price reacted to the news, rising to as high as $3.11 (CoinGecko).

Source: CoinGecko.

Earlier, the native tokens of SushiSwap clone projects plunged to zero after a brief pump.

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