SUI Price Experiences Sharp Fluctuations Following South Korean Investigation

By 0xGorki 10/18/23 12:37 AM

In a recent development, Lee Bok-hyun, the Director of the South Korean Financial Supervisory Service (FSS), has responded to concerns raised by Member of Parliament Min Byung-deok regarding the potential manipulation of the circulation of the SUI cryptocurrency. Lee Bok-hyun has pledged to investigate the matter further, in coordination with the Financial Supervisory Authority and the Cryptocurrency Exchange Association (DAXA), as reported by blockmedia.

Earlier, the community questioned the SUI team for not releasing a true distribution chart and unlocking schedule, and even dumped the rewards for staking SUI on Binance. SUI responded that Sui Foundation has not sold staking rewards or any other tokens from locked and…

— Wu Blockchain (@WuBlockchain) October 17, 2023

Concerns Over SUI Token Circulation

The controversy surrounding the SUI cryptocurrency began when the community expressed doubts about the SUI team’s transparency, specifically in relation to the distribution chart and unlocking schedule of SUI tokens. Additionally, there were allegations of rewards being dumped on the Binance platform, raising concerns about possible improper conduct by the SUI team.

SUI’s response to these allegations was a firm denial. The Sui Foundation stated that it had not sold any staking rewards or tokens from locked and non-circulating staked SUI on Binance or any other platform. This response came amid growing questions and criticisms from the cryptocurrency community.

Parliamentary Criticism and Accusations

During a parliamentary investigation, a member of the South Korean Democratic Party criticized Director Lee Bok-hyun for permitting the listing of various “Burger Coins,” with SUI being a prominent example, on cryptocurrency exchanges. Min Byung-deok argued that the circulation of SUI had negatively affected its market performance, preventing its price from gaining momentum.

Min Byung-deok further accused the Sui Foundation of engaging in staking and subsequently releasing tokens into the market, thus increasing circulation and causing price depreciation.

In response to these allegations, Director Lee Bok-hyun acknowledged the seriousness of the issue raised by Min Byung-deok. He committed to thoroughly examining the matter and conducting investigations into cryptocurrency exchanges through DAXA.

SUI’s Market Impact

Following these accusations and the subsequent news of the investigation, the price of SUI experienced a sharp decline, dropping by nearly 15%. It fell from $0.43 to $0.369 per token. SUI is listed on five major South Korean cryptocurrency exchanges, including Upbit, Bithumb, Coinone, Kobit, and Gopax. The project, which utilizes the Move programming language developed by Facebook, raised $300 million in 2022, with a valuation reaching up to $2 billion. However, its price has been continuously declining post-mainnet launch due to the pressure of selling unlocked tokens to the Community Reserve.

SUI/USDT 1 hour-chart on Binance | Source: TradingView

Sui Foundation’s Response

In an official statement posted on Twitter, the Sui Foundation vehemently refuted claims of manipulating the SUI token supply, staking SUI tokens, or any lack of transparency in token transfers. They expressed their commitment to collaborating closely with DAXA to ensure compliance with South Korean regulations.

The Sui Foundation emphasized:

They have not sold any SUI tokens after the initial Community Access Program distributions.
The circulating supply schedule displayed on their public website and available through public API endpoints is accurate.
Every transfer of SUI tokens by the Sui Foundation is publicly visible and verifiable on the blockchain.

The Foundation also expressed its determination to combat disinformation and unfounded claims through various channels while maintaining transparency in its operations.

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