{"id":438761,"date":"2020-09-17T11:00:56","date_gmt":"2020-09-17T11:00:56","guid":{"rendered":"https:\/\/wncen.com\/?p=438761"},"modified":"2020-09-17T10:54:00","modified_gmt":"2020-09-17T10:54:00","slug":"sushi-faces-massive-sell-off-following-uniswaps-token-launch","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/sushi-faces-massive-sell-off-following-uniswaps-token-launch\/","title":{"rendered":"SUSHI Faces Massive Sell-off Following Uniswap’s Token Launch"},"content":{"rendered":"
SUSHI was among the worst-performing cryptocurrencies on Thursday as the decentralized finance token faced a severe competitive threat from a rival.<\/p>\n
Uniswap, a decentralized trading platform that inspired the launch of SUSHI’s parent project, Sushiswap, launched its governance token, UNI<\/a>, Wednesday night.<\/p>\n Against the expected supply of 1 billion, Uniswap dispatched 150 million UNI tokens for users that have used or supported its exchange. At the time of distribution, an average UniSwap was receiving $1,344 worth of UNI tokens.<\/p>\n About 13,000 people claimed 400 UNI each, leading many observers to compare the airdrop with the US Congress’s stimulus package.<\/p>\n As UNI took the Crypto Twitter and other popular crypto media portals by surprise, its rival SUSHI suffered.<\/p>\n The Sushiswap’s governance crypto fell by a little over 16 percent on a 24-hour adjusted timeframe. On Thursday alone, the SUSHI\/USD exchange rate was down more than 10 percent, changing hands for $1.357 a token in the early London trading session.<\/p>\n <\/a><\/p>\n The losses followed a long streak of losing sessions after SUSHI topped at $15.970<\/a>. They started as a downside correction after the DeFi token’s exponential bull run but matured after Sushiswap’s founder\u2013an anonymous entity\u2013sold all his SUSHI holdings for ETH.<\/p>\n Many observers fears that the Sushiswap co-founder exit-scammed<\/a>. Later, a self-professed creator of the project, known as Chef Nomi, appeared to refute the allegations against him.<\/p>\n “People asked if I exit scammed,” he tweeted<\/a>. “I did not. I am still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure we have a successful migration.”<\/p><\/blockquote>\n But the damage was done. SUSHI plunged heavily after undergoing the scam allegations, falling to as low as $1.13 at one point in time.<\/p>\n The Sushiswap liquidity pool was still holding about $701 million worth of crypto funds. At its highest, the total value locked inside the protocol’s smart contract was $1.428 billion as of September 12, according to the data provided by DeFi Pulse<\/a>.<\/p>\n In contrast, Uniswap’s pool recovered a good portion of that value that had gone to the Sushiswap’s reserve. The project’s TVL surged from $401.38 million on September 10 to $796.02 million as of this time of writing.<\/p>\n Market strategists saw the launch of UNI as bearish for SUSHI under the impression that the former’s liquidity pool was drawing capital out of the latter.<\/p>\n https:\/\/twitter.com\/MacnBTC\/status\/93559809<\/p>\n Alex Saunders, the founder of Nugget News AU, praised Sushiswap for its potential but criticized the project for its “poor governance.”<\/p>\nMassive Sell-Off<\/h2>\n
SUSHI\/USD is trading 91.65 percent lower from its record high level. Source: TradingView.com<\/a><\/pre>\n
SUSHI Bearish Bias Intensifies<\/h2>\n