The Umami Finance decentralized finance protocol is in turmoil as community members are unsure about the future of the project.

Several members of the Umami team have resigned to push the project “back to decentralization and a DAO structure,” according to Discord posts seen Cryptooshala.

The reports claimed that the protocol’s CEO, Alex O’Donnell, dumped his tokens on retail holders, blockchain security firm Peckshield. confirmed this.

Online data shows that an address believed to belong to the CEO has dumped over 10,000 UMAMI tokens worth thousands of dollars in the last 24 hours in multiple transactions.

Umami CEO O’Donnell has not yet responded to Cryptooshala request for comment at the time of publication.

The dumping has caused the UMAMI token to drop over 50% over the past 24 hours to $4.56 from a high of $22, according to CoinMarketCap. data.

At press time, the token has rounded slightly to $15.38.

Meanwhile, Discord messages have suggested that the protocol’s treasury assets are safe and controlled by those under the Umami DAO. He added that:

“[The] the team plans to move forward with the DAO structure and release vaults as planned with the Umami token having the same yield as promised. Umami DAO retains control of both the codebase, including our storage products, and the interface (Umami.finance).”

The official UMAMI website described it as an “institutional grade” DeFi product. The protocol allowed users to earn income from crypto assets such as Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).

UMAMI publishes a monthly financial treasury report detailing all of its financial activities. Its last update was for December 2022. making report net loss of $67,172. At the time, the DeFi protocol wrote:

“There are a lot of negative catalysts brewing that could lead to another downturn in the markets, and we plan to be ready for them.”

Oluvapelumi Adehumo

Cryptooshala journalist

Oluvapelumi believes in the transformative power of Bitcoin and the blockchain industry.