Have SUSHI's Chef Nomi Exit Scammed SushiSwap?

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(Edited)

This is another interesting turn in the SushiSwap project. Chef Nomi got extremely hungry and instead of waiting for sushi to be cooked, he opted to devour sashimi ..LOL!

Some call it FUD, some term it as an exit scam but the truth is major share of liquidity from Uniswap pool has suddenly disappeared.

Interestingly, Chef Nomi is not hiding the fact that he cashed out dev shares by removing pool liquidity and converting all SUSHI into ETH ...yes, he pocketed 38,000 ETH (about $13M)!

Since many in #SushiSwap community have asked, this is indeed, true. There's no denying that we've sold the existing dev shares and put future $SUSHI dev shares into MultiSig community owns.

Now we go back to making sure that the Liquidity Migration happens smoothly in <48hr ✅ https://t.co/nSeliVJFSu

— 🍣 SushiSwap | sushiswap.eth (@SushiSwap) September 5, 2020

Prices of $SUSHI are continually plumetting. Last I checked, it has came down to around $1. People are rushing to remove liquidity from the pool.

But can you call it an Exit Scam?

Chef Nomi is actually not exiting the project. In fact he is trying to justify his rip-off of about 38000 ETH.

He thinks all his effort from idea to creation of the large community around this project and coding for migration etc. deserves this remuneration.

(But in a community-led prject, shouldn't that be decided by the community itself?)

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But he remains committed to the project.
In yet another tweet, he states that he wanted to focus more on project and technicality of migration from Uniswap pool without caring for the token prices anymore.

However, this reasoning seems to be a bit childish, if not laughable!
He also compared his actions with that of Litecoin founder Charlie Lee. But we shouldn't forget that Lee stood committed to the project and only sold his coins 6 years later.

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But the logic is not bad. If true decentralization needs to be achieved, founders should not hold a big chunk of investment in the project.

Predictably, the community is very angry with this move and market prices speaks volumes about the sentiments. It's been continually falling. It would be interesting to see where it finds a support, if any.

When Chef Nomi wanted to reconfirm the candidates for a 6/9 multisig wallet for holding all future dev shares, Adam Cochran replied with this pre-conditions 😂:

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For me, inspite of all these, I'm still quite optimistic about the project. If the platform comes to life, I'd prefer to provide liquidity to this platform instead of Uniswap. But it will be difficult to win back the community confidence, once it's been betrayed. I'm watching this drama to see how community confidence is restored.

Will some big personalities and influencers come forward in the support of project?

What do you feel about this incident? Do you think Chef Nomi was not entitled to those funds and he should deposit them back?

P.S.


Scammers have sprung into action with fake Twitter & Medium account of SushiSwap & Chef Nomi, promising gifts. Do not send any $SUSHI (or any crypto, for that matter) to their address.



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16 comments
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Done is done.
To pay back is not Good enough to build trust.

Of Course- If decentrilize he can not keep so much But If he wants to minimize hes hodling it can be done like a hp-powerdown - step by steps.
This feels not Good.

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True. But he made a hell lot of money within a week. Good to get rich while staying anonymous 😂

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"Good to get rich while staying anonymous"- like satochi...

Well - I see now that some guy is taking over this project. And maybe can it be something good in the future anyway.

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Yeah, the narrative is "Community is taking over" but I think it will always be FTX with the most influence in the future. Dunno how things will turn out but at least prices & liquidity have gradually started to rise a little.

Seems you're following this project closely. Are you too invested in it?

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I kind of invested in it yes. I have some sushi but I am not longer in the suchi project. Still - I want to sell them to get some profit.

I only too invested in celsius. If that service broke - I will be a big looser.

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Good that you made an exit in time and hope you will be able to sell the rest in profit too!

Is there any such news about Celsius? I was already thinking to withdraw my deposits from their wallet this week. Looks like I should hurry up!

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what? What have you read about celsius? I have only good experience of them. Please tell me if you have heard some bad news.

I like the service and have no negative to say about it

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Ah ok then no issues. I presumed that you heard some news that made you say:

If that service broke

I can't complain about their service as I receive my weekly interest in time )

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Hi @xyzashu that is what is called Having your cake oops Sushi and Eating it too
Yesterday when I had checked the price I said oh my god what is this about. Now I know the reason.
This raises the old question how centralized control or monopoly can be so bad for the project.
Did you get an opportunity to exit it in time?

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Well, I chose not to exit. I'm a hodler, you know! LOL!
I had staked some of my SUSHI for FARM. So I'd need to unstake at both places and then redeem my liquidity tokens ...too much of GAS for me.

And seeing a rush for dumping, I thought my speed of doing all these transactions won't be able to beat the crowd So I calculated that if liquidity drops, my harvesting will grow sooner and may be, I'd be better off if something worked out as Chef Nomi was still active.

Let's see what works out of it. Fingers crossed!

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(Edited)

So did you exit from the LP pool? I'm still holding it. I made 1 ETH from selling SUSHI and used the gain to make the LP pool. Let's see what happens. So far have farmed close to 22+ SUSHIs and still counting

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Yes, we hodlers are stil holding on to it. 😂
In fact, rate of harvest has increased as everyone else cashed out 😁

After Chef Nomi transferred the access of multisig wallet to FTX founder SBF, I hope it will recover something at least. I've also voted up for him alog with Adam Cochran, Omakase Bar and 0xMaki for signatory to this multi-sig wallet. I don't know anyone else to support. Who are you supporting?

(I'm not voting to Zebpay, OKEx and CryptoFinally).
Let's see how it turns out.

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Yes hoping for the best. the gas fees is the main problem. thanks for your inputs.

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You would need 3 transactions to move these SUSHI to Harvest Finance for FARM yield. So whenver gas fee is low, you may think of moving your harvest.

I accrued about $6 in FARM in a day. So yeah, it's not much if Gas fee is heavy.

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