The rout continues on the crypto market still won by distrust and fear of a new bankruptcy similar to “FTX bankruptcy.” It is indeed the turn of SushiSwap crypto to sound the alarm. This DEX crypto would be financially in disarray.
Find out why the SushiSwap crypto could be on the brink of bankruptcy and find the most important business news of the day with the Born2Invest mobile app.
Big cash flow problems for SushiSwap crypto
Jared Grey, the head chef of SushiSwap crypto for almost 2 months, is experiencing a term that he is probably not about to forget. After the earthquake caused by FTX’s bankruptcy, Jared Grey has just announced some less-than-reassuring news about the state of the finances of the platform he manages.
In a post published on the project’s governance forum, he was keen to alert the community to the financial difficulties facing SushiSwap. The full announcement is available here.
“After reviewing expenses, it is clear that a significant deficit in the treasury threatens the operational viability of Sushi, requiring an immediate solution,” said Jared Grey.
After his arrival, the head chef analyzed the accounts and initiated reductions in the platform’s operating budget from $9 million to $5 million annually. However, according to him, the accounts are still not there despite these restrictions.
According to his analysis, the current cash flow could allow SushiSwap to operate for only 1.5 years. After that time, the platform would not be able to survive.
Jared Grey, therefore, called for an urgent mobilization to find a solution and try to save the exchange.
The situation is all the more worrying as the supply of SUSHI, the native token will soon reach its maximum. At the time of writing, the total supply is 244,542,059 tokens for a maximum of 250 million (according to CoinMarketCap data).
Possible outcomes for SushiSwap?
In his announcement, Jared Grey outlined several solutions, including a major one that would represent the best chance of survival for SushiSwap. However, his proposal is far from unanimous within the community.
Indeed, he proposed to transfer the totality of the fees collected to the Treasury for one year or until a new economic model is found and can thus replenish the coffers.
However, this proposal is not to the liking of the users and in particular the stakers.
Indeed, diverting the totality of the fees collected to the Treasury implies a suspension of the staking income for a year or more.
The community has thus reminded the chef that without this incentive to use SushiSwap crypto, the platform cannot prosper.
Moreover, this is the abolition of a financial right for xSHUSI holders, which is contrary to the initial foundations of the platform.
In the face of this internal war and financial emergency, we have seen a massive sale of SUSHI tokens since Jared Grey’s announcement.
This massive sell-off has resulted in a loss of value of nearly 18% for the token, currently at $1.18.
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First published in Stradoji, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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