SUI Token Struggles Amidst Manipulation Allegations
The native SUI token of Sui, a layer-1 blockchain, has faced challenges in recovering after experiencing a more than 9% drop. South Korean regulators have accused the Sui Foundation of manipulating the token’s supply for its own benefit. Over the past 24 hours, the SUI token has gained less than 1% after falling from $0.41 to new lows of $0.37. This represents a 7% decline in just two days.
Sui Foundation Denies Supply Manipulation Claims
In response to allegations, the Sui Foundation took to X (formerly known as Twitter) to address the issue. The foundation firmly denied the claims of supply manipulation and referred to them as “unfounded and materially false.” It clarified that there had been no sale of SUI tokens by the foundation after the initial Community Access Program distributions.
“The circulating supply schedule displayed on the Sui Foundation public website and available through the public API endpoints is accurate.”
South Korean Regulators Investigate Sui Foundation
South Korean news outlets reported that regulators from the country are launching an investigation into the Sui Foundation. The South Korean Financial Supervisory Service (FSS) will examine the distribution of the SUI token based on allegations made by Representative Min Byeong-deok, a lawmaker from the Democratic Party of Korea. Rep. Min claimed that the foundation staked coins that should have remained in the non-circulating supply and paid itself interest.
Sui Token Plummet Due to Alleged Misrepresentation
Representative Min also alleged that the reason behind the significant drop in the value of the Sui token was due to misrepresentation by the foundation regarding the amount in circulation. This investigation comes as South Korean lawmakers seek to regulate crypto activity more effectively in response to the Terra Money ecosystem collapse in May 2022. The FSS plans to introduce comprehensive crypto legislation as early as January next year.
Hot Take: Sui Foundation Faces Scrutiny over Alleged Token Supply Manipulation
The Sui Foundation is under investigation by South Korean regulators following allegations of manipulating the supply of the SUI token. The foundation has strongly denied these claims, stating that there has been no sale of SUI tokens after the initial distribution. However, Representative Min Byeong-deok has accused the foundation of staking coins that should have remained in the non-circulating supply and paying itself interest. This investigation comes at a time when South Korean lawmakers are pushing for stricter regulation of crypto activities in response to recent incidents in the industry. The outcome of this investigation could have significant implications for the future of Sui and its native token.
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