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Yo guys, XanPharaoh here.
I just want to start by saying thank you all for the support and engagement, IT MEANS SO MUCH TO ME. I have now decided that, because of my appreciation for all this support, I will release the second part of the series sooner. Then yes, without further delay, let's go.
Let me begin by saying that the information I will share is merely my opinion based on a set of facts. It is no financial advice whatsoever. My only advice would be that you don't make financial decisions based upon what I say, because I'm just a crypto enthusiast and not a crypto expert.
Now, since that is out of the way, welcome to The Pump & Dump Hall of Fame part II. This part will be focusing on the infamous SushiSwap. These scams have become increasingly obvious. I believe that most of you have heard something about this project and I know that you guys probably have a lot to say about it, and I am hoping to read all about it in the comment section of this post.
SO WHAT IS SUSHISWAP?
SushiSwap is a OneSwap code-based cryptocurrency project that was launched in August 2020. It is made up of both a token and a type of decentralized exchange which is called an automated market maker. The exchange has managed to gain quite a bit of investors and has about US$3 BILLION in liquidity... Yup with a B! It is truly a big boy we are dealing with here. OVER THE PAST YEAR, TOKEN PRICES HAVE INCREASED 1,500%. [2]
This change is supposedly entirely decentralised in that the funds for this token comes from liquidity pools, where holders lend their own crypto to these pools in return for attractive rewards. In a successful attempt to drive traffic to the exchange, incentive was provided to investors for depositing Uniswap tokens on the SushiSwap exchange. This was referred to as a “vampire attack” as it sucked out liquidity from one exchange into another.
Say what you want, but I would call this a checkmate.
WHY IS SUSHISWAP BEING LISTED IN THE PUMP & DUMP HALL OF FAME?
We are now at the part you have all been waiting for. SushiSwap was founded by a pseudonymous founder named Chef Nomi (who will hereafter be referred to as Chef). I don't know what you think of it, but when I invest my money, I like to know exactly to whom I give my money, but I digress.
On September 5, 2020, the Chef reportedly ripped off the holders by converting SushiSwap tokens to Ethereum tokens. The alleged rug robbed the holders of a whopping US$14 MILLION!
I don't know if this is okay with you, but I would lose my s! t if it happened to me. Not that I would invest in an exchange where the founder is a fictional character to start with, lol.
This act sent the Sushi token from a high US$11.27 to a sad US$1.27. According to the Chief, he acted within the scope of his founder's rights. [5] I don’t completely agree with that because at the end of the day he was given a major payday, and the people who believed in the coin were left holding the bag. The community was not impressed with Chef's response and rightfully so.
The Chef took to Twitter in a bid to redeem himself. The following posts are some of the salient points of this twitter frenzy.
Investors started losing confidence in the project as a result of the conduct of the then founder, and quite frankly, if I held a position in this exchange I probably would too. It resulted in a transfer of ownership from the Chef to the FTX CEO Sam Bankman-Fried.
CONCLUSION
To conclude, last year was a year of madness for the SushiSwap project with the alleged rugging. I understand that the Chef was held accountable for what he did and he returned the money to the exchange, but I would never return to such a project after what happened. Like I said however, I am no financial advisor. Do your due diligence before taking a position in any of these projects where you don’t know who the founders are, because if they run with your money, will you be able to track them down?
MOST IMPORTANTLY, DO NOT INVEST MONEY YOU ARE NOT WILLING TO LOSE, BECAUSE IF YOU’RE NOT CAREFUL, YOU JUST MIGHT.
https://www.fool.com/the-ascent/cryptocurrency/articles/7-things-to-know-before-you-buy-sushiswap-sushi/
https://news.bitcoin.com/sushiswap-founder-reportedly-exit-scams-as-sushi-token-price-tanks/
https://modernconsensus.com/adblock/sushiswap-founder-returns-millions-apologizes-for-exit-scam/
https://www.coindesk.com/tech/2020/09/11/i-fked-up-sushiswap-creator-chef-nomi-returns-14m-dev-fund/
