Uniswap’s new UNI token made a splash in the DeFi world, with over 13,000 users requesting their codes within three hours of launch. The move was in response to SushiSwap’s decision to transfer nearly $ 1 billion in funds from Uniswap through a vampire research attack, which is a transfer of funds / stock market liquidity to another source.
The introduction of SushiSwap initially sparked one of the most significant decentralized finance competitions, spearheaded by Sam Bankman-Freed, CEO of FTX Crypto Derivatives Exchange. Sam briefly took over the management of SushiSwap from the chairman of the board, Chef Nomi, and then returned control of the project to the community and its co-founder, known as Chef Maki. Cointelegraph discussed Uniswap’s reaction to the launch of its UNI token with Bankman-Fried, who commented:
“The launch was fantastic and Uniswap was one of Defi’s main projects. I think the rating is reasonable compared to other DeFi projects, although higher than I expected for CeFi swap codes. There are also more proposals for the future. … ”
On the same day UNI launched, it was listed on over a dozen exchanges, and Binance was one of the first exchanges to float tokens within 90 minutes of launch, increasing its trading volume to $ 1.9 billion.
Binance also received a lot of criticism from investors for jumping on the bandwagon, as well as listing the SushiSwap SUSHI code at launch, which was considered an innovative but risky project. The token issuance saw Uniswap become the largest platform with a locked-down total value and currently has $ 1.91 billion.
UNI is not just SUSHI’s answer
While it initially appeared that the release of the Uniswap code was a direct response to SushiSwap’s attack on vampire prey, it could also be a strategic move to capitalize on the hype. Cointelegraph discussed this with Stuart Pobjoy, co-founder and president of Cadena Corporation – a blockchain company affiliated with Blockchain Center GBMorgan Chase – who said:
“It’s hard to avoid the conclusion that the launch of UNI is not only a reaction to SUSHI’s vampiric activities, but also to the frenzy surrounding liquidity management. As Uniswap says, this “control character” will not control anything related to the actual Uniswap day – today’s feature is different from the transmission of UNI Even to AMM, which means that their real task is to create an extended resource. ”
UNI hit a permanent high of $ 8.60 immediately after launch, which surprised some traders as they believe the total market value could be as high as $ 3 billion to $ 5 billion. However, the price was quickly adjusted and is currently trading near the $ 4 mark, demonstrating the fact that token distribution and incentive strategies have been bait for investors to restore the liquidity generated by SushiSwap. Popejoy commented:
“I think this is an embarrassing step towards exiting the project, which was extremely successful and did not require oversight, explicit incentive programs or giveaways. But as a way to raise a lot of money and bring attention back from SushiSwap, it makes sense on a temporary basis. ”
It is generally accepted by the public that Uniswap is one of Defi’s largest fundamental projects, while some consider SushiSwap a high priority given that the former president, Chef Nomi, ditched codes that were part of the development team days before the migration. Uniswap. She faced accusations that it was an exit scam. However, Uniswap is viewed by the DeFi community as a more stable project; As such, the price correction does not seem to deter investors from UNI coins. Vadim Kolyushkin, co-founder and CEO of DeFi service provider Zerion, told Cointelegraph:
I bet Uniswap is one of the most famous projects in DeFi and that the launch of UNI has generated a lot of interest from investors who have not previously participated in DeFi. Especially in the Asian market, where we are seeing an increase in demand for Defi assets. In my opinion, the estimate is over $ 5 billion. Fully diluted may be too high, but the market will determine the real value. “