SushiSwap reached a record high of $6.88 Thursday morning. However, the coin traded at $5.91 after a slight pullback.
The coin saw a 20% increase, taking it to 73% below its March 13 record high of $23.38.
What is SushiSwap and how can you use it?
SushiSwap operates as an automated market maker (AMM), and a decentralized cryptocurrency exchange (DEX).
It was launched in September 2020 by Uniswap as a fork. This was one of the first decentralized trading platforms to launch.
An AMM is a cryptocurrency exchange that uses smart contract technology to create markets for any pair or tokens. It doesn’t rely on buyers and sellers like decentralized exchanges such as Binance, Kraken and Coinbase.
Dexes have become a popular tool for cryptocurrency users. This is especially due to the rise of Decentralized Finance (DeFi) which has seen the creation of hundreds, if no thousands, of DeFi platform all using native cryptocurrencies.
The native token of SushiSwap, also known as the SUSHI, is used to settle transactions on the SushiSwap platform. It can also be traded on many other crypto exchanges, including centralized ones.
Why did the SUSHI price rise in the morning?
The SUSHI price rise that was observed on December 9, 2009, is due to the resignation by Delong, chief technical officer (CTO), of SushiSwap.
CTO said that the reason he quit was due to infighting within his company.
Effective immediately, I am resigning my position as CTO in the best interests of the Sushi Community. I enjoyed the experiences we shared and will be able to look back on them with fondness. pic.twitter.com/7pZsQuPgup
— Joseph Delong (@josephdelong) December 8, 2021
He spoke out about the infighting while he was there:
“The chaos that is occurring now is unlikely to result in a resolution that will leave the DAO as much more of a shadow than it once was without a radical structural transformation.”
There has been much infighting among the SushiSwap community’s higher ranks since Maki was fired. Some members have called for the key developer to be forced out.
Delong leaked a poll screenshot in November asking if Maki should be retained in the core or become an advisor.
Delong, however, tried to discredit the claims and even denounced that screenshot in the licked Poll. He threatened to quit if SushiSwap did not support the core SushiSwap team.
SushiSwap announced recently a metaverse and NFT platform. The project is supposed to be governed and managed by a DAO. However, the project is in a bit of a mess due to ongoing infighting and the fact only a few whales have the majority of governance tokens.
The initial price of the SUSHI token was raised after the resignation. However, it is still unknown how the coin will perform over the next few days. There seem to be two camps: one for and one against the resignation.