Sui Foundation Dismisses Rumors of Staking Rewards Sale on Binance
Sui Foundation, the organization behind the construction of the Sui blockchain, has firmly refuted rumors circulating about the sale of staking rewards on the Binance exchange. Sui has successfully launched its SUI token on various centralized exchanges, including Binance, OKX, Bybit, and KuCoin.
Currently, the Layer 1 network boasts a market capitalization of $435 million with a total circulating supply of 604 million SUI tokens. Sui has been acknowledged as a project with a high inflation rate for its token. The project plans to double its total circulating supply in November of this year. On June 3rd, Sui released an additional 61 million tokens.
However, some members of the community have alleged that the project discreetly sold a portion of its staking rewards on the Binance exchange. Through on-chain tracing, the account @defisquared discovered that the staking address of the Sui Foundation had transferred 2.5 million SUI tokens to Binance on May 31st. Despite the fact that both the SUI tokens and the investment fund tokens were distributed at the time of the Token Generation Event (TGE), they remained locked. The entities could only utilize them to stake on the network for transaction verification and staking rewards, and the received token amounts were also locked.
In response to these claims, the Sui Foundation has made a commitment not to sell any staking rewards, and the “internal” tokens are always subject to the scheduled lockup and transfer restrictions. Transactions related to the wallet address mentioned by @DefiSquared adhere to this process.
On May 31, 0x341f sends 2,500,000 SUI rewards to 0x209f. 0x209f then sends 625,000 SUI to 3 different addresses, all of which ultimately end up at binance, but for simplicity we’ll just follow the 625,000 sent to 0x03d8. 9/ pic.twitter.com/EsW5gIDUrS
— DeFi^2 (@DefiSquared) June 27, 2023
Sui is a Layer 1 network built on the Move language. Mysten Labs, the infrastructure development entity, deployed the Sui mainnet on May 3rd. Sui aims to compete with other Layer 1 networks such as Solana in terms of scalability, with speeds of up to 300,000 transactions per second and 100 testnet validators.
The Sui Foundation’s denial of the alleged sale of staking rewards on Binance will likely calm some concerns within the community. However, the incident highlights the importance of transparency and accountability in the cryptocurrency space. As the industry continues to evolve, it becomes increasingly crucial for projects to maintain open lines of communication and address any doubts promptly to maintain the trust of their users and investors.
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