SushiSwap is up 30% on the day after dropping to lows of $1.17 on Sunday.
DeFi token SushiSwap has rebounded after plunging to new lows, trading higher both intraday and on a day-to-day basis. Meanwhile, Band Protocol has distanced the oracles platform, and the CTO Sorawit Suriyakarn, from any links to SushiSwap.
SUSHI’s price against the US dollar dropped from highs of $9.50 earlier in the week to sub $1.20 by the weekend. Most of the losses followed SushiSwap creator ‘Chef Nomi’s’ decision to cash out the dev fund.
However, the SUSHI/USD price has rebounded strongly during the Asian trading session. As of writing, the token is trading around $2.77, after rallying more than 109% since tanking to lows of $1.17. In intraday trades, SUSHI/USD is up 30%.
After rising to highs of $3.19, bulls are likely to struggle for further upsides given the potential for the price to suffer massively from profit booking. Trades above $3.00 will cement a likely uptrend, but if bears hit back, sub -$2.00 is possible.
What happened to SushiSwap over the weekend?
SushiSwap is a fork of DeFi protocol Uniswap and seeks to add liquidity to the decentralized exchange by incentivizing participants via its huge rewards system. The token quickly caught on and more than$1.25 billion was locked in the protocol, despite it being unaudited.
On September 5, the pseudonymous SushiSwap creator Chef Nomi sold nearly $13 million worth of SUSHI tokens meant for use as the developer’s fund. The reaction from the market saw the price of the token continue its week-long descent as investors feared for the worst.
Although price did touch a new weekly low, the worst did not happen as FTX CEO Sam Bankman-Fried took over from Chef Nomi.
Come Monday, Band Protocol denied its CTO Sorawit Suriyakarn was the pseudonymous Nomi Chef.
In a ‘clear the air‘ Medium post published September 7, Chief Product Officer Paul Nattapatsiri rubbished Crypto Twitter claims that Suriyakarn was NomiChef. He noted that the CTO indeed reviewed SushiSwap’s code, but that, in itself, should not be construed to mean he is the anonymous SUSHI creator.
Earlier, Chef Nomi apologized for his action but maintained he wasn’t pulling an exit scam.
“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 tweeted.
While SUSHI/USD trading higher is encouraging, the next phase of development could prove crucial.