DeFi Alert from Binance CEO, Reacting by Listing SushiSwap Quickly
DeFi protocol SushiSwap, which got hype in a short time, saw a big ‘dump’ movement as a result of its developer saying that it has transferred a large amount of tokens to Ethereum; Thus, the most talked about cryptocurrency investors of the last days were disappointed. Changpeng Zhao, who listed SushiSwap on cryptocurrency exchange Binance in a very short time, ironically said that DeFi projects should not be trusted now. Binance CEO Changpeng Zhao aka ‘CZ’ said:
“Many DeFi projects will crash. While some will provide short-term gains, they will also carry very high risks. Do not invest money that you are afraid to lose. “
Most of the DeFi projects will fail.
Some may offer short term gains, but they come with super high risks too.
Don't invest money that you can't lose.
— CZ ? Binance (@cz_binance) September 12, 2020
CZ has recently come up with such statements regarding the criticism that Binance is behind the SushiSwap scandal.
Roche Cyrulnik Freedman LLP (RCF), a US law firm, announced that SushiSwap (SUSHI) will move the sales of its anonymous developer Chef Nomi to the judiciary. This raised questions that the anonymous developer’s identity could be exposed.
While there is no detailed information about the case; It was stated that the decision to be issued could be a precedent. However, the possibility that the developer’s identity could also be revealed made the case more important.
SushiSwap and DeFi Industry
There are some important lessons the DeFi community should learn from the recent SushiSwap discussion.
SushiSwap is a Uniswap imitator built with the idea of powering down VCs and returning them to the community. Its creator, Chef Nomi, sold the project’s development fund (10% of the supply) and transferred control from FTX to Sam Bankman-Fried. Many are working to revive SushiSwap, but the reputation of the project has been damaged forever. Others think that SushiSwap can be revived and gain strength.
The anonymous creator of SushiSwap abandoned the project after cashing in the $ 13 million token allocated to the development fund. Control of the project is now in the hands of Sam Bankman-Fried of the FTX Exchange, but the experiment serves as a very important lesson for the DeFi community. The events that have happened in the very short period of the SushiSwap’s inception provide us with insight into both DeFi projects and investors.
People generally view the situation as “exit scam”. However, according to many people in the community, this is a different dimension of scam. There are even those who think these events were planned from the very beginning. For this reason, it is necessary to research DeFi projects well.
Chef Nomi handed over his executive keys to Bankman-Fried so that the FTX CEO could take over. Bankman-Fried had previously submitted an offer to migrate SushiSwap to Solana in support of his latest project Serum. The transition is about to take place and the price of SUSHI has recovered since Nomi’s launch. However, the future does not look bright for SushiSwap as the project removes its sole competitive advantage against Uniswap.
Binance Loses Its Investors
Binance, the world’s largest crypto currency exchange in terms of trading volume and liquidity, is known for its rapid response to market dynamics and increased investor trading options on its platform.
Binance often lists more than one cryptocurrency on its exchange a day, if not all days. This has also been quite evident in the ecosystem that is now fading and called the “DeFi bubble”. Binance has been and continues to be at the forefront of other exchanges to list new projects with huge gains.
Binance exhibited 15 DeFi projects in August alone, including some of these projects in margin trading. Many of these listed projects were projects that defrauded its investors for millions of dollars. For example, HF and sushi, such as non-processing volume dfi.money Altcom the ‘s may be.
Popular cryptocurrency investor “CryptoWhale” stated that Binance’s decisions to list more cryptocurrencies were wrong, creating adverse situations for both the crypto investor and the adoption of the cryptocurrency market.
“You should really consider adding restrictions to the cryptocurrencies you add to your exchange. Over the years, hundreds of fraudulent cryptocurrencies have been displayed on Binance and millions of dollars of investor funds have been lost forever.
The famous investor warned Binance’s CEO Changpeng “CZ” Zhao about the accountability of the cryptocurrencies on Binance.
“As a stock market CEO, you have a responsibility to list projects with real potential, not just projects that give you the most money. Binance’s current state is, however, discouraging. “
Binance has played a major role in the adoption of cryptocurrency transactions, especially in developing countries. However, the stock market is facing accusations by different countries around the world for allegedly violating regulatory frameworks.
Binance CEO: Do Your Own Research
Binance CEO CZ said in a statement on this issue that people should do their own research because many projects are experimental and some fail, others succeed. According to the famous CEO, investors need to do their due diligence and invest wisely.
With all of these, especially in recent days, Binance has been heavily criticized by many circles for the collapse of Bitcoin (BTC) as a result of the sudden movements. Whenever Bitcoin has a sharp rise or a sharp fall, access to Binance is cut off, stops are not working and investors suffer losses. Each time, we are only sorry, our work continues, and the statement comes from the famous stock market.