SUSHI Faced Strong Sell-Off After Uniswap’s Token Launch

SUSHI faced a strong sell off right after Uniswap launched its UNI token thus becoming the worst-performing cryptocurrency as we are reading further in our latest altcoin news.

Uniswap, the decentralized trading platform which inspired the launch of SUSHI’s Sushiswap, launched the UNI governance token on Wednesday. Against the supply of 1 billion, Uniswap dispatched 150 million tokens for the users that supported the exchange. During the distribution, the average Uniswap was receiving $1,344 worth of UNI tokens.

$SUSHI is basically done after $UNI starts mining tomorrow

— Mac ❄️🐺 (@MacnBTC) September 17, 2020

More than 13,000 people claimed the 400 uni each which led many observers to compare the airdrop with the US stimulus checks. Once UNI took over Crypto twitter, SUSHI suffered. SUSHI faced a strong sell-off and crashed by more than 16 percent in the past 24-hours. The pair exchange rate went down by 10 percent and changed hands for $1.357. the losses came after a long streak of losing sessions after SUSHI topped at $15.970 and started as a correction when the Defi token exponential bull run started but matured once Sushiswap’s founder sold all his coins for ETH.

Many observers on the market fear that Sushiswap suffered an exit scam but the creator later known as Chef Nomi, refuted the allegations and returned the funds, as he tweeted:

 “People asked if I exit scammed. 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.”

The damage was done however as SUSHI dropped immensely after undergoing scam allegations and hit $1.13. the liquidity pool was holding about $701 million worth of crypto funds but the total value locked inside the protocol’s smart contract was set at $1.428 billion according to the data from DeFi pulse. Uniswap’s pool recovered a huge portion of the value that went to the Sushiswap reserve. TVL surged from $401 million to $796 million at the time of writing. The market strategist saw the launch of the UNI token as bearish for SUSHI under the impression that the liquidity pool was drawing capital from the latter.

Alex Saunders praised Sushiswap for its many potentials but criticized the poor governance:

 “SUSHI had so much potential but dug it’s own grave when @NomiChef dumped. It’s a long road back but still possible with FTX & Sam support.”