Umami Finance token crashes by over 50% as CEO dumps holdings

Decentralized finance protocol Umami Finance is in disarray as community members are unsure of the project’s future.

Several members of the Umami team resigned in a move designed to push the project “back towards decentralization and a DAO structure,” according to Discord messages seen by CryptoSlate.

The messages alleged that the protocol’s CEO Alex O’Donnell dumped his tokens on retail holders — blockchain security firm Peckshield confirmed this.

On-chain data shows that the address allegedly belonging to the CEO dumped over 10,000 UMAMI tokens in the last 24 hours for thousands of dollars in several transactions.

Umami CEO O’Donnell was yet to respond to CryptoSlate’s request for comment as of press time.

The dumpings led to the UMAMI token crashing by over 50% in the last 24 hours to as low as $4.56 from a high of $22, according to CoinMarketCap data.

The token has slightly rounded to $15.38 as of press time.

Meanwhile, the Discord messages stated that the protocol’s treasury assets were safe and controlled by those who would obey the Umami DAO. It added that:

“[The] team plans to move forward with a DAO structure and release vaults as planned with the Umami token having the same revenue claim as promised. Umami DAO retains control of both the code base including our vault products and the front end (Umami.finance)”

UMAMI’s official website described it as an “institutional-grade DeFi yield” product. The protocol allowed users to earn yields on crypto assets like Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).

UMAMI publishes a monthly finance treasury update detailing all of its financial activities. Its last update covered Dec. 2022, reporting a net loss of $67,172. At the time, the DeFi protocol wrote:

“There are plenty of negative catalysts brewing that can take the markets for another leg down, and we plan on being prepared for those.”

Posted In: DeFi

Bookmark (0)

Related Posts

Voyager redeems $150M of USDC to fiat through Circle

Voyager redeems $150M of USDC to fiat through Circle

It comes as Voyager account holders continue to advocate for a restructuring plan that would see Binance recoup most of customer accounts.

Bookmark (0)

Metacade raises over $14.7M as presale set to close in 72 hours

Bookmark (0)
Potential crypto ban: Coin Center raises the alarm on the RESTRICT Act

Potential crypto ban: Coin Center raises the alarm on the RESTRICT Act

Coin Center warns of the potential for US authorities to block, restrict, and ban entire asset classes — including cryptocurrency.

Bookmark (0)
Law firm Cooper & Kirk accuses US regulators of weaponizing banking

Law firm Cooper & Kirk accuses US regulators of weaponizing banking

Cooper & Kirk calls on Congress to investigate unlawful and unconstitutional actions against the crypto industry.

Bookmark (0)
OKX becomes latest exchange to apply for Hong Kong VASP license

OKX becomes latest exchange to apply for Hong Kong VASP license

OKX is the latest crypto firm to look to set up shop in Hong Kong after the country’s pivot to a more crypto-friendly stance.

Bookmark (0)
NFT Inspect makes comeback after January shutdown with acquisition by JVH Technology

NFT Inspect makes comeback after January shutdown with acquisition by JVH Technology

NFT Inspect said its new owners boast deep roots in the NFT and Web3 space, adding that it would focus on advancing adoption of NFTs.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *