SUSHI DeFi Token Drops Over 99% as Top Holder Dumps on Uniswap

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Image Source: ImgSpash (Kelvin Zyteng)

$SUSHI, the governance token for a Uniswap lookalike drops over 99% in minutes as the top token holder dumps on the market. The price of SUSHI fell from over $170 to $1.07 in no time.

The launch of the platform was as recent as the 26th of August. Hsaka, a prominent crypto trader tweeted,

Top $SUSHI holder dumps all their sushi causing not only SUSHI price to dump but also prices of all the underlying assets of the various pools retracing (BAND, SNX, AMPL, UMA, etc.)

SUSHI Top Holder Tansfer sushi
SUSHI Top Holder Transfer

This is one of the biggest impending risks for an early DeFi token investor – dumping by the team or angel investors. Apart from this, the transaction cost of the above transaction was 0.02818425 Ether ($11.26), which is high as well. It also addresses the inter-correlation between DeFi projects which share their liquidity and yields. Nevertheless, the correction in other projects was minuscule due to the $SUSHI sell-off.

An Opportunity or Catching the Knife?

Currently, with an over 99% fall, there might be an opportunity brewing along with a rise in APR (Annual Percentage Return). The highest yields on YFI at the moment are coming from SNX, Kyber Network and sUSD with an APR of over 30%. Reportedly, the returns on SUSHI are double than that on Hence, it might seem lucrative to add to the Sushiswap pool.

With respect to token price action, however, in the next two weeks, the token will see high inflation of 1000 SUSHI per block. After 2 weeks, the block rewards will reduce 10 times to 100 SUSHI. Apart from assigning governance right for the token, the team is also adding fees rewards post liquidity. The earned SUSHI tokens will also entitle one to continue to earn a portion of the protocol’s fee.

The SUSHI pool on Uniswap is currently on the 14th position w.r.t. to the total liquidity. It is approx. 50% that of COMP’s liquidity around $9.7 million. Reportedly, the project hasn’t been audited yet and will to transfer all of the liquidity on the Sushiswap LP to earn SUSHI rewards after 100000 ETH blocks, during which time the inflation will remain high as well.

What portion of your holdings are in DeFi pools? Please share your views with us. 

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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