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Binance faces criticism over SUSHI listing, defends itself

Photo of: Sangeetha Golchha
by Sangeetha Golchha

With the dramatic and almost shocking drop of Sushiswap, the users have vented out their angst on the top Decentralized Exchange Binance. The exchange came under severe criticism and fire when people questioned its decision to list the token. But Binance put it very clear that it will continue to back risky projects and stood by its decision to list it. 

In a tweet message, the CEO of Binance, Changpeng Zhao, put up a defense on their decision to list projects like SUSHI. He wrote,

“As one of the leaders of the space, we support innovation. With innovation comes the chance of high reward, and high risk. Some projects make it to the moon, while some fall short. Always manage your risk accordingly. In crypto winter, I tell people to HODL. When things are hot, I tell people to be super cautious. I still get heat whenever something goes south. I will take the heat. It just hurts to see people getting rekt, and still not managing their risks.”

The prospects of SUSHI initially were very promising but it later degenerated in value massively. In just 5 days after its project head, the much unknown developer Chef Nomi dumped a stash of SUSHI from the dev fund, the price of SUSHI declined by a huge margin from $9.5 to $1.13. Chef Nomi has now handed the entire control of the protocol to CEO of FTX, Sam Bankman-Fried.

In a host of tweets, Chef Nomi defended his decision of converting SUSHI token because he intended to move the project away from any ambiguity or doubt about its migration from Uniswap to SushiSwap. He was quoted as,

“I did the recent move because I care about the community. I’m taking IL for you. But all I received was blaming and FUDing. Here’s what happened. The devshare part of me. I converted them to $ETH. I stop caring about price and I will focus on the technicality of the migration.”

Nevertheless, Sushi has been under tight scrutiny for some weeks now because Chef Nomi was the only person who had access to $27 million SUSHI tokens. Chef Nomi implied that the tokens were kept aside and held for further development of the project. As on September 1’st, the project has been doing pretty well representing 77% of the major action on Uniswap. Chef Nomi makes it clear that the participation on the discussion and technical aspects will continue and will see to it that the migration is successful much on the lines of Litecoin. 

But to cut the long story short, the Decentralized Finance market reviewers and watch dogs are quite enraged with the decision and actions of Chef Nomi. Some people who bought SUSHI blamed exchanges like Binance, questioning the need to list the token in the first place. But the organization head said that Binance has always seen to its that DeFi spreads which is why its listed many projects in the last one year. He believes that if DeFi has to grow, it should be amidst education and risk-taking to become more resilient in the future.