Frog Nation Tokens Tumble on News that Its CFO is Allegedly a Former QuadrigaCX Co-Founder
Sifu, the chief financial officer at the Daniele Sesta-led network of DeFi projects known as Frog Nation, is out, per a statement by Sesta on Thursday. Sesta has confirmed his real identity is that of Michael Patryn, a co-founder of failed Canadian crypto exchange QuadrigaCX.
The news first surfaced on Twitter when user zachxbt shared screenshots of a conversation with Sesta.
“I think it is what it is. I preferred to confirm and cut the bull*#it. Even though I know Zach didn’t have hard evidence, it’s better that the community knows the truth and votes on it,” Sesta told The Defiant over Twitter DM.
Sifu has since posted a statement in the Wonderland Discord server.
“I don’t want anyone to feel like they were tricked or manipulated in any way, so I have decided to cease all treasury management activities until a vote regarding my future employment has concluded. As I’ve stated on numerous occasions: I work for you, my backers. If you no longer feel comfortable with me leading this app as I have done since founding it only four short months ago, I will not want to be here.”
All the key Frog Nation tokens were hit sharply in the wake of the news. Sesta seemed to confirm the allegations a little before 2AM New York time. At the time, Wonderland’s token TIME, Abracadabra’s token SPELL and Popsicle’s token ICE were trading at $543, $0.007 and $6.39 respectively.
As of mid-morning on Thursday, they are trading at $374, $0.006 and $4.36, with TIME and ICE having lost 30% of their value, with SPELL down 15%.
Frog Nation is meant to be a network of DeFi projects that are all designed to grow together, feeding into each other’s success, following a WAGMI (we are gonna make it) philosophy.
This hasn’t been the only controversy for the Frog Nation collective this week. On Jan. 25, TIME suffered a series of cascading liquidations which caused the token’s price to crater from $800 to $360 in a matter of hours.
The founders’ leveraged positions were reportedly liquidated, and this led to further price declines due to the size of their positions.
Sifu and Daniele then announced that users who got liquidated behind them would be made whole, either through buybacks if authorized by the DAO, or with personal funds.
Wonderland’s TIME token has been in free-fall as investors sour on Olympus forks.
And all of this comes as Frog Nation is in the midst of a merger with Sushiswap, the decentralized exchange.
Backers on crypto Twitter are coming out strongly about the difference between second chances and known fraudsters.
Perhaps the most notable comment came from one of Sesta’s newest collaborators, Andre Cronje, arguably the most revered developer in DeFi until Sesta’s star began to rise last year. The pair recently launched a new automated market maker based on DeFi 2.0 principles over on L1 blockchain Fantom.
I still support Dani, still planning on working with him, but there are lines, a history of consistent fraud, theft, and malicious behavior isn't a "mistake", that's intent.
Having Sifu manage funds, especially user funds, can be argued is negligence.
That's all I have— Andre Cronje
(@AndreCronjeTech) January 27, 2022
Sifu’s full statement can be seen below.
yyctrader contributed reporting.
Read the original post on The Defiant.
