SushiSwap’s governance token, SUSHI, has spiked 19% after asset management giant GoldenTree disclosed a $5.2 million investment in a post on the project’s forum.
The token went from the daily low of $1.10 to $1.31 following the announcement, according to CoinMarketCap. It’s trading at $1.29 at the time of writing, 94% down from its all-time high of $23.38.
SushiSwap, a clone of UniSwap with extra features like liquidity mining and community-oriented governance, has been recently unable to keep up with its competitors. According to DeFi Prime, it currently ranks seventh in terms of DEX trading volume, behind protocols like ShibaSwap, Balancer, DODO, and others.
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However, GoldenTree, which has $47 billion in assets under management, said that it’s been following Sushi “for a while” and that it believes it has “incredible potential.”
“Although the community has certainly been through some tough challenges, we’ve been amazed at the resilience of both the core team and the community in the face of these speed bumps, as you all have continued to build and release top-tier products. To GoldenTree, Sushi represents the best of DeFi, both in origin and in community,” the post said.
The firm also said that it recently launched a crypto-focused subsidiary, GoldenChain, a new fund, and put together a team of “10 crypto natives to focus entirely on the crypto markets.”
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The investment announcement follows recent organizational changes. On Monday, SushiSwap community members voted Jared Grey as the new CEO, a year after the pseudonymous de facto CEO 0xMaki and CTO Joseph Delong left the company.
On the Flipside
- It’s unclear what role GoldenTree will play or how exactly it will help SushiSwap.
- Some community members have concerns about GoldenTree’s relationship with the new CEO.
Why You Should Care
SushiSwap (SUHI) is among the 10 largest decentralized exchanges and one of the main competitors of UniSwap. Its monthly trading volume consistently exceeds $1 billion.
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