Believing you a keen following of everything DeFi, we reported to you a few days ago that the pseudonymous founder of SushiSwap, Chef Nomi, withdrew $14 m from the developer’s fund. This move was met with much enrage because investors started believing that SushiSwap’s future has been unofficially tanked until FTX founder Sam Bankman Fried stepped in at the right time and undertook the charge of it.
Chef Nomi kept giving assurances of the action, but just a few hours ago took to Twitter to convince the users to stick believing in SushiSwap. He apologized to the users in the given below tweets:
Source: @NomiChef Twitter official account
Subsequent to these posts, a post proving that the transfer was made was further added to this feed:
So, the Sushi tale is yet to remain shut for now, because despite facing criticism and backlash, the funds are being transferred. The mulling point here is what made him take the decision? Was it the guilt surrounding the funds, or the proposed inquiry by the authorities that would be the next step, or if the project is really fund-worthy and this is a last chance of resurrection. Whatever the reason for this is, the move has surely generated some sort of confidence back into the system. The entire message thread is accessible here.
He also apologized to several Twitter accounts directly or indirectly related to the SushiSwap. Chef Nomi apologized to CZ of Binance. We all are aware that Binance is the largest crypto exchange in terms of volume at a global level. But Binance came under the ire of fire when investors, users, and traders alike criticized it for listing SUSHI token and not being responsible towards its investors. But Binance’s official spokesperson was very clear that DeFi progress is only possible when there is a certain amount of risks involved. If everyone plays safe there would be no disruption and innovative solutions may get hampered.
Chef Nomi’s move to return funds and apologizing on social media has garnered a lot of applause. But Crypto industry’s skeptics think that the damage control measures could be as a result of the push by FTX, Binance, and Band Protocol to come clean and return the funds.
The Crypto industry is by far new in terms of adoption and for those who are doing everything by the book, believe it is upon them to retain the trust of the investors in them. FTX and Sam Bankman-Fried’’s interest in SushiSwap initially in the project was a huge success initially and have now become the ones who have become accountable. Binance’s reputation was also at stake and with its incessant efforts to carve its place in the US market, it also had to undertake due diligence to come clean.
Band Protocol’s involvement is clearly speculative now. Even one of its founders is speculated to be the actual Chef Nomi. So its involvement in the entire episode speaks volumes of the speculations being true. The SushiSwap story is a pure warning to investors to be crafty and careful while dealing in the DeFi markets.