The native token of the Sui blockchain, SUI, has experienced a significant drop in value over the past 24 hours, reaching an all-time low of $0.367. However, the altcoin has managed to climb back up to $0.377 at press time, representing a 5.5% drop in value for the day. Over the past week, SUI has seen an 8.7% decrease in value, according to CoinGecko. These fluctuations in price come amidst reports of alleged manipulation of the SUI token supply by the Sui Foundation. The foundation has refuted these accusations, stating that there has never been any sale of SUI tokens by the foundation after the initial Community Access Program distributions. Representative Min Byeong deok of the Democratic Party of Korea has also criticized the Digital Asset eXchange Alliance (DAXA) for not taking action to address the price decline.
Launched in May of this year, the Sui blockchain is a Layer 1 blockchain and smart contract platform designed to make digital asset ownership fast, private, secure, and accessible to everyone. The SUI token is used for various purposes, including paying gas fees for transactions, staking, and governing the network. The total supply of SUI tokens is capped at 10 billion, with half of the supply allocated to the Community Reserve, a fund managed by the Sui Foundation. The remaining tokens are distributed among early contributors, investors, the network's principal developer Mystem Labs, and the Community Access Program.
It is important to note the allegations made against the Sui Foundation regarding the manipulation of the SUI token supply. The foundation has denied these accusations, describing them as unfounded and materially false statements. They have clarified that there has been no sale of SUI tokens by the foundation after the initial Community Access Program distributions. These allegations were made by Representative Min Byeong deok of the Democratic Party of Korea, who claimed that the foundation exploited locked-up SUI coin reserves through staking to generate profits while flooding the market with more coins to inflate its circulating supply. Additionally, Min criticized the Digital Asset eXchange Alliance (DAXA) for not taking any action to address the price decline of SUI.
In light of these developments, it remains to be seen how the SUI token will recover from its recent drop in value. The allegations against the Sui Foundation have raised concerns about the transparency and integrity of the token supply. Investors and users of the Sui blockchain will be closely monitoring the situation and looking for further clarity and reassurance from the foundation. As the SUI token continues to face challenges, it is crucial for the Sui Foundation to address these allegations and provide a transparent and accountable response to regain trust and confidence in the project.
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