The Umami Finance decentralized finance protocol is in turmoil as community members are uncertain about the future of the project.
According to an announcement on Discord, several members of the Umami team have resigned in a move aimed at promoting the project’s “return to decentralization and a DAO structure.”
The sources say the protocol’s CEO, Alex O’Donnell, dumped a large amount of his tokens on retailers — something blockchain security firm Peckshield has confirmed.
On-chain data shows that the address believed to belong to the CEO dumped more than 10,000 UMAMI tokens, worth thousands of dollars, in several transactions over the past 24 hours.
The dumping has caused UMAMI prices to drop more than 50 percent in the past 24 hours, falling from a high of $22 to $4.56, according to CoinMarketCap.
Source: CoinMarketCap
At press time, the token is currently trading at $11.6.
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Meanwhile, announcements on Discord claim that the protocol’s assets are secure and controlled by those following the Umami DAO. It added:
“The team plans to move forward with the DAO structure and plans to release a vault with Umami tokens, with the same revenue requirements as promised. Umami DAO retains control over the codebase including our vault product and user interface (Umami.finance) of control.”
UMAMI’s official website describes it as an “institutional-level DeFi profit” product. The protocol allows users to earn interest on crypto assets such as bitcoin (BTC), ether (ETH) and dollar coin (USDC).
UMAMI publishes monthly financial updates detailing all its financial activities. It was last updated in December 2022, reporting a net loss of $67,172. At the time, the DeFi protocol wrote:
“There are a lot of negative catalysts in the making that could send the market down again, and we plan to be prepared for that.”
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