Blockchain

Is SushiSwap an Exit Scam? Crypto Community Decries DeFi’s Newest AMM

After SushiSwap founder ‘Chef Nomi’ sold his SUSHI tokens, crypto users have accused the mysterious founder of scamming users.

Published

6 months ago

September 7, 2020

Republished by Plato

SushiSwap’s SUSHI token holders were left holding the bag this weekend after ‘Chef Nomi’, the project’s pseudonymous founder, suddenly sold $13 million worth of the tokens. The apparent financial exodus from the project has led some to decry the automated market maker (AMM) as an exit scam.

The selloff contributed to a significant drop in the value of the tokens, which peaked at $11.27 on Tuesday and fell to $1.21 on Sunday, a decrease of roughly 90 percent. At the time when Chef Nomi sold his tokens, SUSHI immediately dopped from $4.44 to $1.21.

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At press time, the value of the tokens had recovered to $2.75, making the drop slightly less severe.

Despite Chef Nomi’s selloff, he has pledged to stick with the protocol, and said that the decision to sell was well within his rights as the platform’s founder.

“People asked if I exited scam. 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,” he said, adding that Charlie Lee did a similar thing with Litecoin.

People asked if I exited scam. 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.@SatoshiLite did that and Litecoin had no problem surviving.

— Chef Nomi #SushiSwap (@NomiChef) September 5, 2020

The crypto community, however, is not happy.

Hackles are raised against SushiSwap, Binance

Since the sale of the tokens, Chef Nomi has become the target of much vitriol–and a doxxing campaign–on Twitter.

Additionally, crypto lawyer Preston Byrne, who practices at Anderson Kill Law, advised Twitter users that “If you lost money in the SushiSwap exit scam, file a report with the FBI and lawyer up.”

“This coin is regulated as a security, appears not to comply with Section 5 or an exemption from registration and therefore a sale is subject to a right of rescission,” he said. With an alleged ‘exit scam’ you could also probably find common law claims. There are ways.”

If you lost money in the SushiSwap exit scam, file a report with the FBI and lawyer up.

— Preston Byrne (@prestonjbyrne) September 6, 2020

Cryptocurrency exchange Binance has also come under fire for listing the SUSHI token without knowing who the founder of the platform is.

However, Binance chief executive Changpeng Zhao allegedly deflected the criticism in a tweet that appears to have been deleted, saying that “for SUSHI, I don’t know who the founder is. If we don’t list new DeFi coins, traffic goes to other exchanges, and we become…obsolete. We provide access to liquidity, we don’t force you to buy.”

“All coins are high risk, especially DeFi.”

#Binance can list scam token like #SushiSwap because they will get good traffic then why not #Electroneum? At least #ETN is not a scam and everyone knows their founder #RichardElls and team. #coingyaan @electroneum @noticias2000 @binance pic.twitter.com/q6luCwFVNw

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— Monesh Kumar (@iMoneshKumar) September 6, 2020

Adel Meyer, the head of the DAPScoin project, wrote on Twitter that “the whole $Sushi and @cz_binance story is exactly what’s wrong with the #crypto industry. Few days old project with unknown founder gets listed instantly on @binance FOR FREE where legit projects get charged $$$ or just never get a chance.”

The whole $Sushi and @cz_binance story is exactly what’s wrong with the #crypto industry.

Few days old project with unknown founder gets listed instantly on @binance FOR FREE where legit projects get charged $$$ or just never get a chance.

Disgraceful! 👎

— Adel (@AdeldMeyer) September 6, 2020

Finance Magnates has reached out to Binance to verify the validity of the deleted tweet. Binance did not immediately respond. Comments will be added as they are received.

A bit of background information

SushiSwap is a fork of Uniswap, a popular ‘automated market maker’ (AMM) on the Ethereum network. AMMs are fully decentralized protocols that automatically provide liquidity.

The new, Sushi-themed AMM took Uniswap’s protocol and added incentives for providing liquidity through a liquidity provider (LP) token: this is where SUSHI comes in. SUSHI token holders are reportedly entitled to a portion of the ShushiSwap’s revenue.

This is what seems to have made the protocol so popular. Just eleven days after SushiSwap was launched, a whopping $1.27 billion was “locked” inside the protocol–a figure equivalent to 77.4 percent of Uniswap’s tradeable assets, according to Sushiboard.

1/ THE SAGA OF SUSHI 🍣🍣🍣

Things that went right and wrong in $SUSHI.

Enter the thread 👇

— Mikko Ohtamaa (@moo9000) September 7, 2020

Additionally, Sushiswap used a technique called “Zombie mining” to reward users with even more SUSHI token tokens in exchange for providing liquidity to the ETH/SUSHI pool on Uniswap. A promotional measure offered rewards up to ten times higher than they would typically be for a limited time.

All of this created a mad dash to collect as much SUSHI as possible: in fact, the protocol was so popular that its launched was blamed for the astronomical gas fees that took over the Ethereum network last week. Uniswap also saw an exponential rise in its “locked” assets as a result.

Eventually, once enough SUSHI liquidity was generated, Chef Nomi planned on using token dispersals to “migrate” the liquidity created on Uniswap through SushiSwap. The date was postponed from Friday to Sunday as SushiSwap’s popularity seemed to continuously grow.

Source: https://www.financemagnates.com/cryptocurrency/news/is-sushiswap-an-exit-scam-crypto-community-decries-defis-newest-amm/

Blockchain

Tether Gets 500 BTC Ransom: Sender Threats to Leak Harmful Documents

Published

1 hour ago

March 1, 2021

Republished by Plato

Tether, the company issuing the most widely-used stablecoin, USDT, has revealed that it got a ransom demand for 500 BTC. The sender has threatened the company to leak documents to the public that would “harm the bitcoin ecosystem.”

Tether Gets a 500 BTC Ransom Demand

Tether, the issuer of the popular USDT stablecoin, took it to Twitter to reveal that someone had threatened to leak documents to the public in an attempt to “harm the bitcoin ecosystem.”

The company explained that “forged documents are circulating online purporting to be between Tether personnel and reps of Deltec Bank & Trust and others. The documents are bogus.”

Furthermore, Tether explained that they’ve also received a ransom demanding 500 BTC, which is currently worth around $23.6 million. They also revealed that unless the ransom is paid, the sender would “leak documents to the public in an effort to harm the bitcoin ecosystem.” Also, Tether has no intention of paying the money.

What Now?

At the time of this writing, there’s no further information on what’s going to happen next.

It is unclear whether this is a basic extortion scheme like those directed at other crypto companies or people looking to undermine Tether and the crypto community as a whole. Either way, those seeking to harm Tether are getting increasingly desperate.

The company also said that the “forged communications and the associated ransom demand” were reported to law enforcement.

Interestingly enough, all of this comes about a week after Tether and Bitfinex reached a settlement with the office of the New York Attorney General, putting an end to a year-long lawsuit that many thought could really harm the ecosystem. Nevertheless, the company admitted to no wrongdoings and agreed to pay an $18.5 million fine.

However, as part of the settlement deal, the company has also agreed to no longer be able to deal with customers from New York.

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Source: https://cryptopotato.com/tether-gets-500-btc-ransom-sender-threats-to-leak-harmful-documents/

Blockchain

Litecoin Price Analysis: 01 March

Published

3 hours ago

March 1, 2021

Republished by Plato

The cryptocurrency market has been moving in a wave-like fashion with continuous crests and troughs. The market has been seeing spurts of growth in the price, but it did not trigger a price swing. Litecoin [LTC], also witnessed such a push in its price recently, but at the time of writing, the coin continued to move within a tight range.

The digital asset has a market capitalization of $10.99 billion and was being traded at $163.94.

Litecoin 1-hour chart

Source: LTCUSD on TradingView

The above chart of Litecoin has been noting the price consolidation between $155 and $181. Before the drop to this level, LTC was trading between $169 and $181 for a while. However, sudden selling pressure pushed it to this new price level.

This could mean that the LTC market may further this phase of consolidation as momentum in the Bitcoin market also noted a similar trend.

Reasoning

The Bitcoin market has been pushing the price of most altcoins in the market. Now that, the digital asset moves sideways after a little pump, the alts are also showing signs of consolidation.

Litecoin has shown that the volatility in its market has comparatively decreased as the Bollinger Bands converged. Meanwhile, the 50 moving average and signal line were beginning to witness a bearish crossover, which could be just a sign for the price to retrace within the above-mentioned range.

The Relative Strength Index has climbed to equilibrium due to the boost in price. This meant that the buyers and sellers were equal in the market, and hinted towards yet another spell of sideways movement for LTC. Meanwhile, the awesome oscillator noted the lack of momentum in the market.

Conclusion

The current trend prominent in the LTC market was of consolidation between $155 and $169. There has been bearishness evolving in the market, but the price swing may not be visible in the short-term.

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Source: https://ambcrypto.com/litecoin-price-analysis-01-march

Blockchain

LetsExchange Launches Crypto Trading Service With Smart Exchange Rates

Published

4 hours ago

March 1, 2021

Republished by Plato

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For each trade, LetsExchange instantly selects the best rate across the world’s leading crypto exchanges and lets the trader secure this rate at the beginning of the transaction.

Cryptocurrency trading can be a very lucrative activity. Because of the price volatility of many coins, the possibilities to make gains through short-term trading are big. Two factors influence the outcome of a trade. First, the trader must buy crypto at the best possible rate. And second, the trader must be able to buy or sell the crypto assets without delays.

The LetsExchange platform has been designed to maximize traders’ gains by facilitating the two factors mentioned above. With the use of this service, traders can get the most profitable exchange rate available on the market at a given moment. What’s more, the platform ensures that the said rate remains unchanged until the trade is completed.

This newly launched service also eliminates delays in the processing of transactions by waiving registration, KYC screening, and other authentication and authorization procedures. The platform’s founders elaborate on these features that allow traders to maximize their gains:

The registration process and KYC authentication are time-consuming. Traders usually cannot afford to waste much time in such procedures as the cryptocurrency market is volatile, and exchange rates may change significantly within a few minutes. With LetsExchange, traders can benefit from these fluctuations by buying and selling cryptocurrencies as soon as they decide, without hassle and delays.

LetsExchange works with the world’s top crypto exchanges including Binance, Okex, KuCoin, Gate, Huobi, and more. By using its SmartRate technology, the platform always offers the most profitable rate across all the exchanges. In this way, traders won’t waste time in comparing rates and researching the market status at a given moment.

This platform offers the possibility to secure the most profitable exchange rate by selecting the Fixed Rates option. This feature will maintain the said rate unchanged until the completion of the trade. But if a trader prefers to forecast the rate fluctuations in a bid to maximize their gain, the floating rates option allows doing it. Each trader has the freedom to choose the most convenient strategy.

Thanks to the use of fully automated exchange algorithms, the only delay in the processing time of a transaction depends on the network speed of the selected cryptocurrency. During Beta testing of the platform, the average transaction time was 25 seconds.

The LetsExhange platform at https://letsexchange.io is now ready to help traders maximize their gains by guaranteeing the best rates and eliminating unnecessary delays.

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About LetsExchange

LetsExchange is a one-stop multicurrency exchange service free of registration, limits, and complications. It supports 210+ coins, about 45,000 currency pairs and automatically selects the best rate across all major crypto exchanges for each trade. Built by a team of crypto visionaries with 10+ years of experience in the blockchain space and fintech, LetsExchange saves your time at each step of a crypto swap and amplifies your trading revenue.

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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/letsexchange-launches-crypto-trading-service-with-smart-exchange-rates/