July 21, 2024
SUI Token's Recovery Struggles Persist Despite Denial of 'Unfounded' Allegations
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SUI Token’s Recovery Struggles Persist Despite Denial of ‘Unfounded’ Allegations

Sui’s native SUI token has faced challenges in its efforts to recover from a drop of over 9% in response to allegations by South Korean regulators. These authorities have accused the Sui Foundation of manipulating the token’s supply for its own advantage.

SUI token has shown a slight increase of under 1% over the past 24 hours, after experiencing a decline from $0.41 on October 16 to new lows of $0.37 on October 18. According to data from CoinGecko, this marks a 7% decrease in just two days.

In an October 18 post on X (formerly known as Twitter), the Sui Foundation, the organization behind the layer-1 blockchain Sui, strongly rejected the allegations of supply manipulation as “unfounded and materially false.”

“We want to clarify some inaccuracies that have been reported today,” stated the Sui Foundation.

“The baseless and materially false statements regarding the supply of SUI tokens must be addressed. There has been no sale of SUI tokens by the Foundation after the initial Community Access Program (CAP) distributions. Period,” they explained.

“The circulating supply schedule displayed on the Sui Foundation’s public website and accessible through public API endpoints is accurate.”

The Sui Foundation’s firm response came following reports from South Korean news outlets TechM and Block Media, which indicated that regulators in the country had initiated an investigation into the Sui Foundation.

According to these reports, the South Korean Financial Supervisory Service (FSS) announced its intention to investigate the distribution of the Sui token, following allegations made by Representative Min Byeong-deok, a lawmaker from the Democratic Party of Korea.

Rep. Min asserted that the Sui Foundation had generated self-interest by staking coins that should have remained in the non-circulating supply.

“It has fallen more than 67% in the five months since listing. The issuer, Sui Foundation, received self-interest by staking (depositing) the locked-up amount and sold it to increase circulation,” Rep. Min added.

Additionally, Rep. Min claimed that the reason for the Sui token’s decline was because the foundation had “misrepresented the amount in circulation.”

South Korean lawmakers have intensified their efforts to enhance the regulation of cryptocurrency activities in the country, particularly following the collapse of Do Kwon’s Terra Money ecosystem in May 2022. As a result, the FSS anticipates introducing a comprehensive set of cryptocurrency legislation as early as January next year.

Image By vecstock

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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