Ethereum based decentralized exchange, Sushiswap has announced the launch of a new update on the platform, which is coming after the native token, SUSHI lost about 95% of its value.
SushiSwap created a buzz two months ago when it ventured into the Ethereum and decentralized finance sector. the decentralized exchange was dubbed the community-owned version of Uniswap.
As at when Sushiwswap was created, Uniswap did not have its now popular native token, UNI. The most significant feature that the Sushiswap possessed was that about 0.05% of every trade made on the platform was added to the funds of the holders of SUSHI, the native token of the platform.
Another distinctive nature of the token was that it was farmed how Yam Finance was farmed, which became popular in the DeFi sector. Despite the popularity of the token, it has not performed well in the market as it has lost about 95% of its value since its launch.
The coin traded around $11.50 when it launched but has witnessed a massive decline to trade at $0.60. Notably, the liquidity and trading volume of the platform has taken a nosedive too.
SUSHI decline attributed to recent developers fund issue
Analysts and experts in the DeFi sector have attributed the massive decline of the decentralized exchange and its native coin to the recent discord in the developing team of the SUSHI token.
Also read:The said anonymous member, “chef Nomi” allegedly took Ethereum and SUSHI worth $14 million from the collective developer funds claiming he was the owner. Even though the developer later returned the said funds, it was not enough to stop the decline that later rocked the decentralized exchange and its token.
With the recent happenings, traders and investors have been left bewildered and wonder what the new line of action will be for the Uniswap fork.
Taking to Twitter, concerned members of the DeFi sector have asked what the next line of action is for the exchange, and the general manager of Sushiswap told most of them that something big was already cooking.
Sushiswap announces a new update on October 30
Sushiwap announced on October 30 that it had launched a new update after its long silence on its user’s cry for new features for weeks. The major and significant part of this update was the new user interface, which will allow its clients to interact with the exchange protocol, staking, and new governance features.
Another feature added was the new limit order feature and a BentoBox, a feature that enables the users on the exchange supply and borrow assets like the way Aave or Compound does it.
Presently, Sushiswap is trying its best to put the previous fund issues with “chef Nomi” prominent DeFi analysts are still pointing to the issue as the reason for the price correction that the token underwent.
Talking about the effect of SUSHI’s situation on the DeFi sector, an analyst noted that it’s looking like a pump scam like the DCB, which happened between February 2018 to May 2018.
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