$47 Billion Asset Manager may turn decentralized exchange protocol around
A much-followed crypto analyst says the entry of a $47 billion asset manager could present a much-needed opportunity for a decentralized exchange (DEX) protocol. SushiSwap (SUSHI).
Will Clemente told his 660,800 Twitter followers that one of the consistent use cases for cryptocurrencies is allowing market participants to trade highly liquid altcoins on exchanges. no transactions. exist. to focus.
“In fact, the ratio between DEX volume and centralized spot volume is higher than it was this time last year in the bull cycle. Obviously, there is a constant fundamental need to gamble at crypto casinos. "
Even amid growing demand from crypto traders, Clemente emphasized that trading volume on SushiSwap has dropped a lot this year.
“Due to leadership issues, among other things, Messari estimates that SushiSwap (leakage to the laundry business) volume has decreased by 89% year-over-year. This has left them significantly behind competitors like Uniswap. "
However, Clemente says things are starting to look up on decentralized exchanges after SushiSwap hired Jared Gray as head chef. Gray, the former CEO of defunct cryptocurrency exchange Bitfineon, has previously said that he plans to return Sushi to "her legal status among her peers."
Clemente also highlighted that New York-based asset management firm GoldenTree has taken a relatively small position in SUSHI.
“After that, [$47 billion] asset management company GoldenTree made $7.27 million from Sushi. Show commitment by publicly sharing your wallet and attempting to implement protocol changes with a post on the Sushi forum. "
According to Clemente, joining GoldenTree and going public with his position could change SUSHI's fortunes.
“Beyond the assumption that the brilliant Avi Felman and GoldenTree will do everything in their power to not let their first major crypto position go bust, I think this is an extraordinary opportunity.” interesting symmetry for SUSHI.
If GoldenTree makes a positive change, the market will extrapolate a bit more. Make two changes and the market will extrapolate more. This can have a reflective effect on SUSHI's change history.
Similar to Alameda's bid for DOGE, I think the asymmetry here is favorable as Avi, GoldenTree and the resources behind them are likely to produce at least some positive structural changes, that's all the market needs to predict higher expectations. positive.
At the time of writing, SUSHI is changing hands at $1.27, down more than 8% on the day.
Oct 12, 2022