SUI Token Faces Significant Drop, Hits All-Time Low
The native token of the Sui blockchain, SUI, experienced a major drop, reaching an all-time low of $0.367 in the early hours of Wednesday. However, it has since climbed back to $0.377, marking a 5.5% decrease in value for the day. Over the past week, SUI has seen an 8.7% drop in value.
About the Sui Blockchain and SUI Token
The Sui blockchain is a Layer 1 blockchain and smart contract platform designed to provide fast, private, secure, and accessible digital asset ownership for everyone. The SUI token is used for paying gas fees, staking, and governing the network.
Token Allocation and Manipulation Allegations
Half of the 10 billion token supply is allocated to the Community Reserve managed by the Sui Foundation. The rest is distributed among early contributors, investors, Mystem Labs (the network’s developer), and the Community Access Program.
Recent reports have accused the Sui Foundation of manipulating the token supply. However, the foundation has refuted these allegations, stating that there has been no sale of SUI tokens by the foundation after the initial Community Access Program distributions.
Allegations Against the Sui Foundation
Representative Min Byeong-deok alleged that the Sui Foundation exploited locked-up coin reserves through staking to generate profits while flooding the market with more coins to inflate its circulating supply. He criticized the Digital Asset eXchange Alliance (DAXA) for not taking action to address the price decline.
South Korean Regulatory Response
If allegations of manipulation or unfair disclosure are confirmed, the South Korean Financial Supervisory Service (FSS) will have DAXA inspect the matter. The FSS has yet to respond to these allegations.
Foundation Responds and Development Team
The Sui Foundation asserts that the circulating supply schedule of the SUI token displayed on its website is accurate. It denies liquidating any SUI tokens other than what is specified. The Sui blockchain was developed by technology leaders from Meta, who were previously involved with the Libra Blockchain and Move Programming language.
Hot Take: South Korea’s Crypto Market Regulation
South Korea, known as a hotbed of crypto in Asia, has been actively regulating its cryptocurrency market to ensure investor safety and prevent illegal activities following the collapse of the Terra ecosystem last year.
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