The Sui blockchain’s native token, SUI, recently hit a low, dropping to $0.367, marking a 5.5% drop in 24 hours. The price has fallen by 8.7% in the past week. The Sui Foundation has faced accusations of manipulating the supply of SUI tokens, with claims that it has exploited the frozen Sui coin reserves through strikes to generate profits while increasing the circulating supply, which has contributed to the currency’s price drop after Terra Collapse South Korean regulators took immediate action. take action to prevent a FUD situation in the market.
SUI coin accused of fraud
Shedding light on the controversy, Democratic Party of Korea Rep. Min Byeong-deok so-called that the Foundation’s actions had caused dissatisfaction among investors, as SUI’s share price fell 67.1% in five months. In the doctrine, Min criticized the Digital Asset eXchange Alliance (DAXA) for failing to address the price decline, likening it to “leaving the fish to the cat.” He alleged that the Foundation profited from deploying coins that should not have been in circulation and sold the coins received as interest on the market.
The SUI Foundation has rejected such claims
The Sui Foundation refuted the allegations in response, stating that they are “baseless and materially false.” They claim that the Foundation did not sell any SUI tokens after the first Community Access Program (CAP) distributions. The chairman of South Korea’s Financial Supervisory Service (FSS) has indicated that the regulator may inspect DAXA if allegations of manipulation are confirmed.
The Sui Foundation emphasized that the circulating supply schedule displayed on its website is accurate and has not been changed. The Sui blockchain was developed by technology leaders at Meta, known for the Libra Blockchain and Move Programming language, and is supported by respected experts in distributed systems, programming languages and cryptography.
South Korea’s Financial Supervisory Service (FSS) is considering an inspection if allegations of manipulation and unfair disclosure are proven. Furthermore, Director Lee also confirmed that the FSS stands ready to work closely with the relevant authorities and will take decisive action if any evidence of manipulation or fraud involving Sui Coin comes to light.
This situation is unfolding as South Korea attempts to regulate its cryptocurrency market and prevent illegal activities following the collapse of the Terra ecosystem last year.
Impact on SUI
The SUI token has seen a negative impact, hitting a new all-time low of $0.36 after experiencing a significant decline from its peak of $1.50 in May, marking a 76% drop in 167 days. Interestingly, despite the increase in total value (TVL) to a new all-time high of $59 million, the token price has not responded positively. Despite circulating news of fraud, the SUI Foundation has awarded more than $1 million in grants to more than 15 projects, but concerns about transparency remain.
