The industry giant Uniswap (UIS) announced yesterday that it would be selling part of its tokens to an unnamed insider and would issue a new, security-enhanced version of the UIS token to investors. But there’s a vital issue with the announcement that has yet to be explained: it’s unclear who bought the tokens at what price.

The crypto-currency community was recently left scratching their heads after a reportedly high-value sale of Uniswap tokens (UIS) was made to a single buyer, but there’s nothing fishy about the deal.

The DeFi Education Fund, a new policy organization aimed at promoting decentralized financial education (DeFi) and advocacy, was supported by Ethereum’s (ETH) DeFi Uniswap protocol, providing half of the protocol’s treasury funds in a single transaction.

The fund was established with 1 million Uniswap (UNI) and received the support of the protocol’s control token holders in a recent vote, with 79.7 million UNI votes in favor and 15.0 million against.

DeFi Education Foundation

The funded organization recently announced that it had converted 500,000 UNIs worth about $10 million into USD Coin (USDC) in a single transaction facilitated by institutional OTC cryptocurrency firm Genesis Trading.

With the help of @GenesisTrading, we sold 500k UNIs for ~$10.2M USDC to fund the efforts of the Defi Education Foundation.

We’re sending 500,000 in the next 24 hours. UNI to Genesis and gets ~$10.2M USDC in return.

– Defi Education Foundation (@fund_defi) 12. July 2021

Since many of the proponents of the proposal are large securities owners, the announcement quickly led to criticism.

The announcement was made via a strangely empty Twitter account, with no avatar or details on how the proceeds of the sale would be used, adding to skepticism about the deal.

Analyst Igor Igamberdiev noted that Larry Suckernick, one of seven multiple subscribers to the DeFi Education Fund, sold $50,000 worth of UNI shares from his own portfolio just hours before he sold $10 million worth of shares in the fund.

1/3

It seems that Larry Suckernick, one of the people who signed on for DeFi’s $20 million education fund, left UNI five hours before the $10 million open sale pic.twitter.com/JWlxZC2L4Q

– Igor Igamberdiev (@FrankResearcher) July 13, 2021

A member of the Defi Education Foundation committee replied that he agreed with some of the comments, adding that the UNI he was selling from his address was from a grant his peer group had received a few weeks ago, and that since he had *just* noticed it, he was selling it to get USD coins to send to people.

According to him, the UNI for DEF was already sold at the time of the aforementioned sale and he has not sent the USD coin to anyone because he is still waiting for people to give him their address.

The history of the canal does not tell the whole story

1. The UNI I sold at my address was from a grant a group of us received a few weeks ago. *We just realized we have it, so we sold it to the USDC to send to people.

2. UNI for DEF has already been sold at the time of the above sale.

– Larry Sukernik (@lsukernik) July 13, 2021

Others are concerned about Uniswap’s lack of decentralization.

https://t.co/LeDKSw4ipw

TBF, the group that sold its proxies for stakeholders who voted $UNI decision-making is at the mercy of insiders pic.twitter.com/WKPOTDiR9Y

– TΞtranodΞ (@Tetranode) July 13, 2021

Degree of decentralisation Uniswap in view

Uniswap’s UNI token was launched last September and, as a management token, was intended to allow holders to dictate the direction of the protocol:

With delegated voting pools and a 4% quorum of tokens required to approve a proposal, the majority of UNI holders have significantly limited voting power compared to the team and investors.

Source: Uniswap.

While Uniswap’s devolution level is the focus, UNI is currently trading at $18.89, down about 3.62% over the past 24 hours.

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