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Sui Foundation denies token supply manipulation claims

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TL;DR

  • SUI blockchain token’s value drops by 9% following market manipulation claims.
  • South Korea’s Financial Supervisory Service to inspect the Sui team’s practices.
  • Sui Foundation rejects all allegations, emphasizing no post-distribution SUI sales.

SUI, a prominent blockchain token, has plunged 9% amid allegations of market manipulation, drawing intense scrutiny from South Korea’s financial watchdog. The precipitous drop follows remarks from Lee Bok-Hyeon, director of the Financial Supervisory Service, regarding a forthcoming inspection of the Sui team’s practices. This move aims to ascertain whether there has been any intentional inflation of the token’s supply through staking or non-transparent disclosure methods.

The Sui Foundation quickly countered these assertions, labeling the circulating speculations baseless and categorically false. They emphasized that no sale of SUI tokens occurred after the initial Community Access Program distributions. Additionally, the Foundation affirmed its stance of full cooperation with DAXA and its member exchanges, championing the principles of compliance and transparency.

Significantly, the Foundation has been transparent with its token supply schedule, corroborated by the real-time data on its public website and API endpoints. This stance was a direct response to accusations from DeFi researcher DefiSquared. The analyst had accused SUI of misrepresenting emissions and unloading tokens on Binance, a claim the company firmly denies.

In a detailed breakdown, token. unlocks revealed that since its inception, tokens worth $336 million have been unlocked. Of these, stake subsidies received $72 million, the community reserve saw an inflow of $129 million, and the community access program obtained $139 million. These disclosures indicate a strategic allocation of resources, underscoring the Foundation’s commitment to its roadmap.

However, market participants are bracing for May 2024, when Series A and B investors gain access to their tokens, injecting an additional $290 million into the circulating supply. This future event may have undercurrents that could significantly impact SUI’s market dynamics.

Hence, the ongoing controversy highlights the delicate balance projects navigate in the decentralized space. It underscores the need for regulatory clarity and enhanced transparency practices, elements critical to fostering trust with investors and regulatory bodies alike. The outcome of South Korea’s investigation could be a pivotal moment for SUI, potentially setting a precedent for how similar situations are handled in the rapidly growing blockchain sector.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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