With the rise of bitcoin in recent years, several new cryptocurrencies have appeared on the market promising great innovations and returns. Still, a CEO of a cryptocurrency, owner of a bunch of tokens, decided to abandon the project, dump everything and lower the price of the asset.
After the situation, the community of Umamis DAO has been meeting in groups since last Thursday (9) to assess the damage of the situation.
In fact, the digital currency was not having a good time, and with the dissatisfaction of the now former CEO, the situation is all the more delicate.
Cryptocurrency CEO sells his asset, asset price falls
In the past 24 hours, Umamis DAO has not made any announcements to the market outside of the Discord group. But among investors, it’s clear that former CEO DefiAlpha has left the project for good.
In addition, the entire staff of the decentralized organization (DAO) also resigned last Thursday. According to a public note, the person responsible for the notification declares that the action is necessary to decentralize the project again.
“We’d like to clarify a few things about what’s going on at Umami: The team resigned from Umami labs today to try and get Umami back to decentralization and a DAO framework. The CEO dumped all his tokens through his address here, 0x21dF3E7371A58eB0e2248F1362eB5fa01fC9B34F.”
With the massive sale of tokens, the price of Umami (UMAMI) fell 31% in the past 24 hours, a pullback that reflects the project’s uncertainties.
Project tries to appease investors
According to the research of live coins, the Umami DAO project tries to keep the investors of the project calm. So one of the shared bits of information is that the project’s treasure remains protected, as access depends on multisig signatures.
In addition, current developers retain control of the DeFi code, which presents itself as a pioneering institutional project.
In the coming days, it is expected that the team that will remain with DAO will prepare a new proposal for the management of the project.
However, the new proposal recognizes that if the reputational damage to the project is severe after its recent collapse, no proposal should be pursued. In this case, the project intends to end DeFi and return funds to investors who believed in the proposal.
“If the fallout from recent events results in an irreparable loss of reputation that hinders vault growth and product line revenue, DAO should consider dissolution to allow UMAMI investors to recoup costs.”
In the coming days, DAO management will decide on the future of the project. As of December 2021, the UMAMI token has plummeted 94% in the market since its all-time high.
Follow Livecoins on Google News.
Like on Facebook, tweet and Instagram.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
