Arca rejects SushiSwap’s Phantom Trope proposal and is willing to buy all SUSHI at a higher price than the current price

Cryptocurrency asset management company Arca has strongly opposed SushiSwap’s Phantom Trope proposal. SushiSwap made the proposal early last week as part of its Treasury Diversification Plan.

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Arca-CIO Jeff Dorman

The reason Arca rejected the Phantom Trope proposal

Phantom Trope is considered a strategic fundraising with the goal of using 51 million SUSHI in the SushiSwap Treasury for institutional investors. Community member 0xMaxi believes the move will help cement SushiSwap’s position as the “Blue Chip DeFi”.

However, Arca, one of the largest SUSHI investors, strongly disagreed. CIO Jeff Dorman has called the Phantom Trope a “destroyer of value”. He stated that “Arca will support a new offer with an initial offer price 31% above the current TWAP price.”

The Management Company believes that firing SUSHI to attract institutional investors will bring poor results for existing investors. Additionally, as reported by Bitcoin Magazine, Dorman believes that SUSHI is undervalued at current prices.

In a statement on Twitter, CIO Arca said:

“Sushi swap doesn’t need money, as 0xMaki emphasizes. We agree that diversifying the treasury helps, but not at the current low prices and there is no need to increase the size by 60mm. “

Arca is one of the largest buyers of SUSHI in the secondary market, holding 7.5% of the circulating supply. Darmon notes that suggested discounts are not indicative of a good growth project.

“SUSHI is currently trading at a huge discount to price and now is absolutely not the time to sell tokens on the market.

With Arca’s expertise in capital markets and transaction structures, we believe that our team can bring many economic and strategic advantages to SUSHI as well as existing investors / community compared to the proposed Phantom Trope. Some people are selling SUSHI to buy at a cheaper price as part of this new offering. In other words, this looks more like an arbitrage than a long-term strategic investment. “

Dorman noted that if the SUSHI community persists in their intention to sell tokens from the Treasury Department, Arca will be the one to buy them back at a fair price for the community. Dorman urged the team to prevent prices from falling further, but stated that Arca was perfectly prepared to pay above SUSHI’s current trading levels.

The current price-to-sales ratio of the entire DEX market is 12.75x. So if SUSHI is trading at this level, the real price should be around $ 40. in the past 24 hours.

Arca rejects SushiSwaps Phantom Trope proposal and is willing to

Source: TradingView


According to the AZCoin News

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