Time For 2021 SUSHI To Shine? SushiSwap Is Up 51% This Week

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Last Updated on 17 January 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Notorious DeFi coin Sushi seems to be making a comeback and has been climbing up the charts again. Given the scandal that it caused last summer we understand that some in the cryptosphere might be hesitant to give it another go, but seeing renewed interest in global media for DeFi, we feel that we must ask the question again (we ran an article with the same title on 5 September 2020 after the Chef Nomi incident).

So for the January 2021 version, and seeing that LINK, YFI and other DeFi coins are also rising, we must wonder about it: is it safe to eat 2021 SushiSwap (SUSHI)?

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SushiSwap and Chef Nomi

By now, DeFi coin and platform SushiSwap is back at it’s highest level since the so-called Chef Nomi incident, which marked the peak of the first DeFi hype in the summer of 2020. At the time, around half August, any new food-token coin would be bought up by investors just as quick as it was launched, and thus only a few days after SUSHI had been launched, it had already tripled in price.

After it became known that the creator of the project decided kept several million pre-mined tokens to himself, rumors of possible scam started to spread. Two days later, just as the coin was peaking around $10, the development team sold their preferred coins, investors lost faith and dumped the coin, triggering a selloff in several other food-named DeFi coins such as Hotdog and Kimchi.

Even though most DeFi coins run on the Ethereum blockchain, founder Vitalik Buterin warned about the Sushi scandal and claimed that others would follow.

Panic set in and crypto enthusiasts believed that the summer DeFi hype would prove to be the same pump and dump scheme that some ICO coins proved to be during the 2017-2018 crypto bull run. DeFi lost a lot of trust from the cryptosphere as a result. By the beginning of November, Sushi was trading for $0,50.

The world of Decentralized Finance has been working steadily in the background to regain it’s footing though, and seems to have found renewed trust from investors ever since Bitcoin went on a tear during the last months of 2020.

In December, help for Sushi was to be found by the interest of Yearn Finance’s de facto CEO, Andre Cronje, who proposed a merger. Ever since then, Sushi has been on the mend.

Financial Times warning

Earlier this week, the megaphone of the classic financial world, the British business newspaper Financial Times, warned about DeFi (Decentralized Finance) in a note clearly aimed at any regulatory reader. The said that the computerized version of banking via DeFi loans is:

Raising questions, as our current bank regulations exist mainly to prevent human failings.

Although one would mostly see this as a warning against DeFi, you must also wonder why this is done at this moment. Could it be that classic finance realizes that the popularity of cryptocoins and the admittance of some that it will in a decade or so be able to compete with actual banks, is creating panic in London’s City district?

With DeFi coins like Yearn, Chainlink and SUSHI providing the 2021 altcoin rally with new headlines, it just might.