SushiSwap administrator triggers 50% drop in token price

The price of SushiSwap’s DeFi platform token over the past 24 hours fell by 50% — from around $4.60 to $2.26.

Adam Cochran, partner at Cinneamhain Ventures said that the SushiSwap administrator sold half of the dev fund’s assets worth $27 million.

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Why the recent $SUSHI dump? @ChefNomi sold half of the $27M dev fund that he said he wouldn’t touch without community approval.

Whether you agree with the action or not, it was done without a community vote and without announcing it to the community. https://t.co/v9QMLhhMt6

— Adam Cochran (@AdamScochran) September 5, 2020

Why did the SUSHI token dump happen? ‘Chef Nomi’ sold half of the $27 million in the developer fund. He had previously said that he would not touch them without community approval. Whether you agree with his actions or not, this was done without a community vote and without announcement.

To support his claim, Cochran attached a tweet from the SushiSwap administrator, in which he said that he had indeed converted the coins into Ethereum. Also, ‘Chef Nomi’ sought to reassure the community that he is not leaving the project, but rather remains committed to its development.

Cochran cited details of recent transactions from the administrator:

• withdrawal of 2,558,644 SUSHI and 20,039 ETH from the Uniswap liquidity pool;
• conversion of 2,558,644 SUSHI into 17,971 ETH.

According to the Twitter account @CryptoCobain, 80% of SushiSwap community members remain optimistic. Some urge the “chef” to buy back the coins.

SushiSwap dev dumps $8m of tokens on the market.

The hopium of a -80% community is on display. pic.twitter.com/1mGfV623Ok

— KING CO฿IE (@CryptoCobain) September 5, 2020

Earlier, partner Cinneamhain Ventures warned, that “‘Chef Nomi’ could dump $27 million in the native SUSHI tokens in his wallet at any moment.”

At the same time, the SushiSwap administrator stated that the aforementioned sum represents his stake, which had been contemplated from the outset:

“Theoretically I could sell them all, but I don’t see anything wrong with that. It’s not that I’m hiding it or anything of that kind. I will also spend some of them on two audits and grants.”

Earlier, SushiSwap clone tokens slumped to zero after a brief pump.

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