(Obsolete) 4 reasons Sushi token price dropped below $1

At the time of writing, the Sushi token price is near $1. We already analyzed why the Sushi token price will drop below $1 soon. This post confirms our analysis for more reasons.

Tightening regulations posing great uncertainty on decentralized exchanges

The tightening regulations on blockchain projects posed great pressure on the future. Just yesterday, owners of BitMex, one of the biggest crypto exchanges, were charged with operating an unregistered trading platform Illegally and violating multiple CFTC regulations. The event will have a great impact on the blockchain projects, especially those with financial services.

The tightening regulations are a trend globally. Earlier last month, the third largest and the largest crypto exchanges in Korea were raided by police separately within a week.

Other popular projects like Binance, EOS and Bitfinex are suffering from class actions.

DEX token as a new form of ICO project?

ICO has been banned or regulated by some major countries like the US and China. Some consider a native token of decentralized exchange a new form of ICO. SEC already defined ICO as being one type of security offering, which means for any ICO, you must register first and need to approve, otherwise it is illegal. If a decentralized exchange token is considered ICO variation, the Sushi token is no doubt illegal.

Scam concerns

Sushi token is the native toke of Sushiswap which is a fork of UniSwap. Sushiswap took the advantage of UniSwap and the main “innovation” is its native token as an incentive for liquidity providers. As UniSwap founder criticized experienced could create SushiSwap in one day. We are still not sure who is SushiSwap founder. We can conclude from the price chart that the sushi token holders are always selling.

The overall crypto market will dip 

Although democratic congress has passed $2.2 trillion stimulus plan, there is still a question that the Senate will pass as well. Now Trump has tested positive, the impact of COVID-19 is even greater than we expected. The stock futures plunged immediately after the news spread. Then Dow Jones, Nasdaq and S&P 500 all opened low. As the crypto market is highly correlated to stocks since unlimited QE, the stock market will pull down the overall crypto market. Sushi token is no exception..