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SushiSwap Head Chef Suggests Cooking Up New Token Model – Will The DEX Survive 2023?

On December 7, Jared Grey, the CEO and “Head Chef” of SushiSwap, suggested that the DEX is burning through cash like there is no tomorrow.

According to the forum post made by Grey, the DEX has, more or less, a year and a half in headroom which resulted in the exchange enacting a 100% allocation from fees on its staking token xSUSHI. 

This 100% allocation, however, is temporary until the DEX’s situation improves or new tokenomics are enacted. Will this proposal be the answer to SushiSwap’s urgent situation? 

New Year, New Tokenomics 

Grey’s current proposal, if passed, is a technical undertaking for the DEX which could save it from its current state. According to the proposal, liquidity providers, or LPs, will receive a share of the 0.05 % swap fee on the ecosystem.

They can also lock their liquidity to earn emission-based rewards with a soft-lock system, meaning that they can pull their liquidity out before it reaches maturity but they lose their rewards. 

xSUSHI rewards are also updated. The token would lose its previous cut on the fees and will be replaced with an emission-based rewards system. The soft-lock system will have differing rewards for different lock tiers.

The emission APY, according to the forum post, will be around 1-3% if instated. The new tokenomics would also introduce token burning in the form of buy backs of SUSHI and burning off the rewards if the locked liquidity or xSUSHI is pulled out. 

Issues Wafting In The Air For SushiSwap

Although the new tokenomics look sound, a comment on the December 7 forum post shows something different. According to user GoldenNaim, the platform is currently using $4 million of the calculated $5 million operating budget for wages. 

This is incredibly troubling as this only leaves the team a measly $1 million for making SushiSwap better through innovation. Jared Grey’s reply to this is just:

“Yes, we need to pay people competitive wages to work at Sushi.”

But it seems that the proposed tokenomics has an effect on SUSHI’s price. According to CoinGecko, SUSHI has jumped by 1.8% in the past 24 hours with the biggest rally in the weekly timeframe at 2.8%. 

The DEX’s fundamentals are also looking bullish as Cryptolaxy, a crypto fundamental and technical analysis platform, show that SUSHI is undervalued to some degree. If SUSHI is to recover from 2022 market woes, the token must break through $0.9849 resistance. 

As the year progresses forward, we’ll see if SushiSwap will implement its proposed tokenomics and save it from its current state. 

-Restaurant Business Magazine

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Inconsistent Metrics Indicate Further Struggle For SUSHI – Colder Winter Ahead?

SUSHI is having a hard time gaining some ground as the market declines again. Today, SUSHI has lost more than 5% of its value, following the trend of other major cryptocurrencies such as Bitcoin and Ethereum.

Here’s a quick glance at how SUSHI is performing:

  • Optimism manifested itself as an acceleration in development activity and an increase in whale demand for SUSHI
  • Technicals and metrics imply significant bearishness
  • SUSHI could wrap up 2022 in a bumpy ride

The token’s dismal showing is in contrast to some positive trends, such as rising developer engagement (as reported by Santiment) and rising whale interest (as reported by WhaleStats). Metrics and technicals, however, suggest that SUSHI may close out the year with negative numbers.

SUSHI Technicals Not Looking Great

The coin has found support at $1.013 and is presently trading at $1.119. The price is at a red candle, supporting a further drop in the near future. Money Flow Index verifies the decline that has started despite RSI readings near neutral levels.

This pessimism is bolstered by the gloomy data from CryptoQuant. Exchange reserve data have grown over the past few days, despite increased development activity and whale interest being incredibly favorable indicators.

The oversold level of SUSHI’s stochastic relative strength index (RSI) may serve as a catalyst for a pullback, notwithstanding the stock’s bearish sentiment.

The Bollinger band is in a position that is close to neutral, but its moving average acts as resistance at $1.263. However, the present price action is persistently pushing the bottom half of the range, which could result in a negative outcome for the token.

Drastic Measures Required?

Currently, the price is attempting to settle near $1.114, which could indicate that bulls and bears will remain in a prolonged deadlock. CMF data for SUSHI may suggest a turnaround.

Messari’s revealing of a major decline in SUSHI’s volatility could help investors and traders gain some momentume. Sharpe’s ratio indicates that the token’s performance indicates very low returns relative to its volatility.

The current state of the crypto may be the result of recent reports that the DEX’s finances are not in good shape, and its CEO Jared Grey is considering severe measures to remedy the situation.

With DeFiLlama observing repeated reductions in TVL for SUSHI, investors and dealers of the token may have a colder winter this year.

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SUSHI Latest Feats Are Quite Impressive, But Crypto Must Overcome Rough Terrain

SUSHI has shown strong bullishness, ranking as the most influential project in Avalanche and breaking into the top 10 in Altrank on Polygon.

At this time of writing, CoinGecko is estimating a 24% increase in value, which is a 10% increase from where it was.

The following is a quick rundown of some of SUSHI’s more notable qualities that demonstrate its “tasty” status:

  • There was a 4% increase in TVL.
  • Positive environment, but unfriendly market conditions are a drag for the token
  • Future discomfort is possible, but the investment case remains strong

In addition, DeFiLlama has noticed a 4% rise in TVL. All in all, investors and traders have a lot to be optimistic about here.

But the technicals of the coin suggest that the bullishness is fleeting, as it is being carried around by the present bear market.

SUSHI Remains Stale

Since its crash in May 2022, SUSHI’s price has barely moved. Also, the token has been trading between $2.083 and $0.861 for some time now.

This coin, however, has been making higher highs and lower lows despite the bear market since the latter half of Q2 this year.

The present price surge, however, is not only due to its recent successes, but also to the active development that Santiment has seen.

Image: TradingView

Recently, the team issued an update on its focused liquidity pool, which they claim would increase capital utilization efficiency.

At present, the token’s long-term price action is a spreading triangle. This indicates an increase in volatility and a possible price reversal.

This coincides with the expansion of the Bollinger band at the current market price. On shorter timelines, the present price has already made it past the middle band, but on a daily scale, the price is still below the middle band.

While the regression channel partially confirms a possible reversal, below-neutral RSI readings impede this possibility. Chaikin’s money flow index, which currently stands at -0.12, likewise favors the bears.

Caution Advised For Traders

If the price continues to struggle and closes the day with a red candle, SUSHI may fall to $1.083 in value. If the bulls are unable to defend this price level, a further decline to $1.012 is possible.

Sushi would likely be an excellent investment if market conditions were less unfriendly.

With the EMA ribbon indicating that a short position is significantly more plausible, resistance at $1.375 will be greater despite SUSHI’s favorable circumstances.

As the situation steadily improves, SUSHI appears to be an appealing investment for portfolio diversification.

SUSHI total market cap at $151.5 million on the daily chart | Featured image from Coin Edition, Chart: TradingView.com

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SushiSwap Suffers Monthly Drop In TVL – How Will SUSHI Perform This November?

Traders and investors in SushiSwap face a unique conundrum as optimistic and bearish signals battle for control of the market. The recent inclusion of SushiSwap on Boba Network may account for the increased number of whale sightings on the site.

Even while this points to a strengthening bullish market for SushiSwap, the TVL numbers act as a counterpoint to the recent events. As reported by DeFiLlama, Sushi’s TVL numbers fell on November 3 but have since risen, reversing the monthly decline.

The listings and whale sightings are exciting, but how will Sushi do in November and, if at all possible, in December?

The Bulls Edge Out The Bears

Today’s excitement for SushiSwap isn’t just due to TVL. CoinGecko has predicted a brighter future for Sushi, the native token of SushiSwap.

There is positive momentum over a variety of time horizons, with the monthly time frame showing the most impressive growth at 59.2 percent. In part, this is because of the exposure gained via SushiSwap’s inclusion on the Boba Network.

Image: TradingView

Recent reports about SushiSwap’s reorganization may possibly be a contributing factor. On October 26, it was announced that the DAO underlying SushiSwap would split into three legal organizations incorporated in Panama and the Cayman Islands.

The community voted on the decision, with a unanimous vote in favor of the restructure. The modification was prompted by the Commodity Futures Trading Commission’s (CFTC) lawsuit against Ooki DAO, since the commission claims Ooki breached US investing laws.

How Will Sushi Fare This Month?

Sushi bulls can start being optimistic this November, as Sushi enters a positive market structure. Currently, the EMA ribbon indicator suggests that the most profitable position in current bull market is long. This is confirmed by a rising Stoch RSI reading, which showed an optimistic market sentiment.

However, Chaikin’s money flow indicator reveals a different reality. The CMF is at a neutral 0 level, indicating that market volatility is high with the possibility of a bullish or bearish break. However, as the currency approaches its peak, a bearish reversal becomes more probable.

Sushi investors and traders should monitor the Stoch RSI to determine whether to increase their holdings or sell, because if the indicator exceeds the overbought upperband, keeping the position could result in quick losses during the correction phase.

SUSHI total market cap at $240 million on the daily chart | Featured image from Japan Centre, Chart: TradingView.com

Disclaimer: The analysis represents the author’s personal understanding of the crypto market and should not be construed as investment advice.

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Time To Buy SushiSwap (SUSHI)? Here Are The Levels To Watch

Besides the current market darling Dogecoin (DOGE), Polygon (MATIC) and Arweave (AR), driven by the Meta announcement, are attracting the most interest today. Flying somewhat under the radar at the moment is SushiSwap (SUSHI), which should be no less interesting in the coming weeks.

As Will Clemente, Co-Founder of Reflexivity Research recently tweeted, SUSHI is currently “the cleanest trading sh*tcoin I’ve ever played. Whoever is market making this, 10/10 job.”

As the respected analyst stated, he prefers the $1.50 to $1.55 level for a buy, as there is a confluence with large bids on Binance and liquidity levels for late longs.

The hourly chart currently reveals that the SushiSwap token has broken the important $1.65 level on the downside in the 1-hour chart., making it vulnerable for further downside.

SUSHI USD

SUSHI breaches $1.65. Source: TradingView

However, on the daily chart, the SUSHI price is still in an ascending channel. If the trend holds and a bounce occurs in the $1.55 area, the next big target could be the 5-month high at $2.00. If SUSHI manages to retake this mark as well, all eyes could be on $2.75.

SUSHI USD

Source: TradingView

Fundamentals Backing The Case For SUSHI

The fundamentals support the thesis of a continued upward trend for SUSHI. Thus, the decentralized crypto exchange SushiSwap has recently approved a restructuring. The Sushi DAO community has approved the plan of establishing 3 companies for a new DAO.

This was necessary after the Ooki DAO was targeted by the US Commodity Futures Trading Commission (CFTC) on September 22 for alleged violations of US investment laws. As a result, SUSHI’s price fell below $1.50.

The restructuring thus removed the regulatory uncertainty that had burdened the price.

Very bullish in early October was also the news that asset manager GoldenTree took a $5.3 million stake in SushiSwap. Subsequently, the SUSHI token soared by 13%.

As Clemente explained after the announcement at the time, SushiSwap has made a positive turnaround after some negative news. First, a new chief executive, Jared Grey, was hired.

Next, $50B asset manager GoldenTree placed its bet on SUSDHI and expressed their commitment with a post on the Sushi forum. Clemente therefore believes:

Aside from the assumption that the brilliant Avi Felman and Goldentree will do everything in their power to not let their first major public crypto position go bust, I think this offers an interesting asymmetric opportunity for Sushi.

If Goldentree orchestrates 1 positive change, the market will extrapolate that they’ll make several more. Make 2 changes and the market will extrapolate out even further.

This could create a reflexive effect for the Sushi turnaround narrative.

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Here’s Why SUSHI Is Down More Than 10% In The Last 24 Hours

Over the last day, the price of SUSHI, the native cryptocurrency of the SushiSwap ecosystem, has been on the decline. However, this was not just a normal market decline and was tied to rumors that have been circulating in connection to its new ‘Head Chef’ Jared Grey’s conduct in the past and inappropriate sexual conduct with a… horse.

Accused Of Running Scams

A little over a week ago, the SushiSwap decentralized finance (DeFi) protocol appointed Jared Grey as its new head chef. All was fine for a while until the rumors started to emerge. In a thread, a Twitter user called out Grey over some of his previous projects.

The thread alleged that Grey had orchestrated various scams in the space under his company called “Multiplex PC” and had stolen crypto from investors. The account known as YannickCrypto pointed out that Grey had previously been the CEO of ALQO, which had been used to steal user funds. Apparently, the ALQO team had launched a web wallet which had then been used to steal a large supply of ALQO from investors.

The accusations did not end there because Yannick alleges that Grey had taken the scam further. Apparently, ALQO had subsequently been moved to the Ethereum blockchain and then renamed to EONS to make it impossible to trace back to ALQO.

Another scam Grey is accused of is of a crypto exchange, Bitfineon, that was promoted but never went live. The Twitter user explained that Grey had charged coin founders a 1 BTC listing fee for Bitfineon and stole about 20 BTC from founders this way. 

Then there were the less unsavory rumors that Jared Grey had been involved in inappropriate sexual conduct with a horse. In true crypto fashion, this last rumor garnered the most interest and has since caused the price of SUSHI to dump.

SUSHI price falls 10% in 24 hours | Source: SUSHIUSD on TradingView.com
SUSHI Takes The Heat

Since the thread and the rumors began circulating, the price of SUSHI has taken a big hit in the market. The price had declined by more than 10% once the rumors were in full bloom, pushing the price of the digital asset down to $1.2 at this time.

SushiSwap Head Chef Jared Grey had then taken to Twitter to dismiss the rumors which he referred to as “baseless accusations.” He denied ever stealing funds from investors and instead said that his business partner had been the one who had actually stolen the funds. 

“I have always operated with integrity in this space; you can reach out to anyone I’ve worked with directly over the years,” said Grey. “I’ve had business failures, which CT likes to scrutinize, and I’m OK with that because it comes with the territory.”

Featured image from Zipmex, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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SushiSwap: Deciphering How SUSHI Is Posting Unparalleled Price Growth

Positive developments in the marketplace have led to a rise in SushiSwap share price. Asset management business Golden Tree has bet around $5.3 million on SushiSwap.

The news caused a nearly 15% increase in SushiSwap’s share price the day after it was released. Since the uptick of August 31–September 10, this is one of SushiSwap’s most rapid periods of expansion.

The fall that occurred on September 13 as a result of negative macroeconomic pressures was almost entirely erased due to this rally. SushiSwap has a current TVL of $607.51 million.

Increased network activity was also noted, according to Santiment’s analysis of the price spike that was also made public.

They also saw the rise in both network activity and address creation. However, what does this mean for SUSHI generally?

Expanding The Protocol

As stated in a thread on the SushiSwap site, Golden Tree has faith in the potential of the entire Sushi protocol, praising its resilience along with that of the community that supports it.

The company stated that with the funding, they will be able to contribute in the development and expansion of the protocol’s various components, such as Kuro (a loan service) and Trident.

This investment has a tremendous impact on the development aspect of things. This is the significant increase in on-chain development activity.

SushiSwap Served On The Green

The graphs depict this optimistic prognosis for SUSHI. Since October 4, the intraday time scale has displayed green candlesticks until now. The upswing surpassed the $1.1413 resistance level, which had previously resisted a breach.

Image: TradingView.com

The current surge is supported by the middle line of the Bollinger band and the 20, 50, and 100-day simple moving averages. This rally should be viewed with caution, however.

When the bulls reach a substantial level of resistance, a rise of this magnitude may be met by a robust reversal.

Currently, there’s a lengthy rejection of $1.4282. This adjustment is already visible on shorter time scales. On the 1-hour time frame, a downward trend is forming. Currently, bulls have sufficient momentum to challenge the $1.4282 resistance level.

The bulls should defend the $1.1587 support line if the price falls. A long position may be untenable for investors and traders at the moment. Investors and traders can enter the market at the present price and establish a stop loss at $1.4194.

Meanwhile, long-term SUSHI holders can rejoice at this relatively recent rally.

SUSHI market cap at $173 million | Featured image from The Market Periodical, Chart: TradingView.com

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SushiSwap Kicks Off Climb, Why This 40% Rally Is Just Getting Heated

Up 57% in two weeks and 40% in 30 days, SushiSwap (SUSHI) moves at its own beat. The decentralized finance (DeFi) token trends to the upside on the back of a potential integration with Stargate, the LayerZero implementation.

Related Reading | Why SushiSwap’s 15% Gain Could Be The Beginning Of An Uptrend

At the time of writing, SUSHI trades at $4.80 with a 14% profit in 24 hours.

SUSHI with small gains on the 4-hour chart. Source: SUSHIUSDT Tradingview

LayerZero is a communication protocol that enables direct interaction between different blockchains. Stargate is a bridge solutions running on top of it.

By integrating with SushiSwap, the decentralized exchange (DEC) could unify the liquidity spread across its 16 different versions. In that way, users would access cheaper cross-chain transactions, more security, new products and investment strategies.

If the integration is approved, for example, liquidity providers on this DEX could expand their rewards. In step of receiving a portion of the transaction fees for 1 liquidity pool running on Ethereum, they could collect rewards from all the pools across the SushiSwap ecosystem.

The voting process that will accept or denied this potential integration has begun. Data provided by the DEX’s governance; this voting will end on April 4, 2022.

Currently, a majority of SUSHI holders have voted yes on the proposal with 6.4 million of the token at the time of the snapshot. This represents 99.99% of the votes so far which suggest overwhelming support for this proposal.

The proposal was presented by Tangle and OxMaki and promises to provide a better user experience for cross chain swaps, maximize trading volumes on Sushi pools, and more benefits to the DEX’s treasury. The proponents wrote:

We propose to have Sushi integrate Stargate to facilitate Omnichain native asset swaps and transfers between networks. This will help unlock the power of Sushi by allowing users to move freely between assets and networks.

SushiSwap Signals More Gains

The DEX and its native token seem to be reacting to this announcement. A pseudonym analyst caught the move to SUSHI’s current levels based on an On-balance volume (OBV), a metric used to measure momentum, downtrend break for the daily chart.

As seen below, the analyst believes SUSHI could reach as much as $6 if the token is able to sustain its current momentum. With the apparent imminent approval of the Stargate integration proposal, a continuation of the upward trends seems likely.

$SUSHI – Nice looking setup with a downtrend break on OBV with confluence with a double bullish supertrend. pic.twitter.com/GqyKDeaUO4

— IncomeSharks (@IncomeSharks) March 30, 2022

Related Reading | SushiSwap Narrowly Escaped A $350 Million DeFi Hack, Here’s How

Additional data provided by Material Indicators (MI) suggest investor with bids orders between $100,000 are dominating the current price action. While this investor class remains optimistic, smaller investors have been selling into this SUSHI rally.

Large investors (purple) buy as retail (yellow) and smaller investors (green and red) sell this SUSHI rally. Source: Material Indicators.

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Why SushiSwap’s 15% Gain Could Be The Beginning Of An Uptrend

Decentralized exchange (DEX) running on multiple networks, SushiSwap (SUSHI) currently moves in tandem with the general sentiment in the market. The token approached the $4 price point but started trending to the downside as Bitcoin was rejected above $45,000.

Related Reading | How A Whitehat Hacker Saved 109K ETH On SushiSwap-Based Contract

As of press time, SushiSwap trades at $3.5 with a 1.5% loss in the last 24-hours.

SUSHI moving sideways on the 4-hour chart. Source: SUSHIUSDT Tradingview

SUSHI holders could benefit from a long-term bullish trend. Recently, developer 0xMaki shared a proposal to integrate SushiSwap with LayerZero via their first omnichain application called Stargate Finance.

LayerZero is a decentralized cross-chain solution to integrate multiple blockchains. The protocol allows the network to interact and communicate without a third party or token.

In that way, for SushiSwap, LayerZero and Stargate remove friction from the process of swapping tokens from a native chain to an alternative blockchain. The developer explained:

LayerZero, and is an Omnichain asset transfer protocol that leverages the Delta Δ Algorithm to solve the bridging trilemma:

Instant Guaranteed Finality: the guarantee of funds on the destination chain when a transaction is successfully committed on the source chain.

Unified Liquidity: the shared access of a single liquidity pool between multiple chains.

Native Assets: the user-desired assets (native or most liquid synthetic) on the destination chain.

SushiSwap has been released on multiple blockchains, and with LayerZero and its Stargate application, the protocol could combine all its liquidity without a single point of failure.

This means the different versions of the DEX on Ethereum, Polygon, Binance Smart Chain, Fantom, and others could launch unify cross-chain strategies and merge their total value locked.

According to 0xMaki’s proposal, an integration with Stargate would “facilitate” the transfer and swapping of tokens between native assets. In that way, SushiSwap could see its potential “unlock” and provide users with an improved experience to perform cross-chain trading, new strategies, and increase liquidity across SUSHI pools.

SushiSwap Goes Beyond One Single Blockchain

In addition to these features, Stargate facilitates transactions by tracking the user’s gas reserves. As the developer explained, the application can move gas between different blockchains to enable a transaction. 0xMaki added:

This eliminates the pains and struggles of trying to find a gas faucet, requesting gas from another user, or trusting that a User Application will send you enough gas after transferring.

Stargate and its native token STG have attracted the attention of major players in the crypto space. Sam Trabucco, CEO at Alameda Research, expressed the firm’s long-term bullish thesis for STG.

The firm participated in STG’s recent auction where they “bought all the tokens”. The assets will be kept under lock for at least 3 years.

The cross-chain asset management opens up a wide array of possible DeFi use cases, makes capital allocation for firms like Alameda more seamless, and aids in making the crypto markets more efficient — among many other benefits @StargateFinance is creating.

— Sam Trabucco (@AlamedaTrabucco) March 22, 2022

Related Reading | SushiSwap Narrowly Escaped A $350 Million DeFi Hack, Here’s How

STG was recently launched on crypto exchange FTX via the spot market. Once the produce was deployed, the token saw an increase in volatility and has been trending downwards in the last hour with a 128% profit in the past week.