Compared the Uniswap numbers from 24 hours ago and now... a ONE BILLION DALLAR migration in a day!!! That is EPIC. History event!
What happened?
- A small team in Brooklyn created this decentralized AMM (auto-market-maker) exchange, audited their code, made it open source. (Uniswap is one of the easiest to use exchange with a beautiful UI)
- An anonymous developer forked (=copied the code) the Uniswap, with exact same UI and code, and launched it with commission turned on, developer gets a cut, too. Then he created the SUSHI token and got it listed on Binance. The SUSHI token will represent the shares in commission received.
- After people started flocking to SUSHI hoping to get a share of the profit, the developer sold all his developer share SUSHI tokens and caused the token value to drop significantly. The anonymous developer took about 38,000 worth of Ether, about US$11 million at the moment.
- Binance defended why they listed a token from an anonymous developer: https://cointelegraph.com/news/binance-defends-sushi-listing-after-criticism
- Before you jump to conclusion, this is not a SCAM. No bug and no scam, the SUSHI exchange is still functioning and everything works as expected other than the developer--who didn't really create the code--has cashed out all their tokens. So, what does the SUSHI token holders do? They are still incentivize to earn commissions if tradings are happening on SUSHI, instead of Uniswap, and due to this incentive, the migration happened today.
- $1 billion dollar worth of crypto assets have now moved from Uniswap to SUSHI.
What is means?
- Imagine one day, Fidelity runs a promotion and customers moved $1b worth of their investments to Fidelity from Charles Schwab. $1 billion!!!
- And what does it mean to the Uniswap developers? Somebody can legally and rightfully copy their platform, charges more commission and have all their clients migrated away!
Witnessed this historic event in real-time today, under the orange sky.
WTG, 2020! ;-)