Sui Native Token Fights Back Amidst Supply Manipulation Allegations and South Korean Regulatory Scrutiny
Summary:
The native SUI token of Sui, after grappling with a 7% drop in two days, has managed to attain slight growth of less than 1%. The Sui Foundation debunks allegations by South Korean regulators of supply manipulation for personal gains. These charges emerged amid reports that the Financial Supervisory Service (FSS) plans to probe the Foundation's token distribution following related claims by a Democratic Party of Korea legislator. The lawmaker also accused the foundation of inflating the circulation amount, resulting in the token's value decline. The South Korean authorities are set to introduce robust crypto regulations by January next year.
The native token of Sui, SUI, has been battling to recover after dropping more than 9% due to charges by South Korean regulators. The officials accuse the Sui Foundation, responsible for the token, of tampering with the supply for their own benefit. SUI token has seen marginal growth of under 1% in the past day after decreasing from $0.41 on October 16 to a low of $0.37 on October 18. This signifies a 7% downturn within just two days, as per CoinGecko data. Amid claims of supply manipulation, the SUI token has found it difficult to reclaim its position.
In an October 18 update on platform X (previously known as Twitter), the Sui Foundation, creator of the layer-1 blockchain Sui, branded the supply manipulation allegations as baseless and utterly false. The Foundation stressed that confusions reported today have been rectified. They assured that no sale of SUI tokens occurred by the Foundation post the Community Access Program (CAP) distributions, denying the claims around the supply of SUI tokens. The Foundation has always been and remains devoted to working in cooperation with DAXA and its member exchanges, maintaining complete compliance and transparency.
The circulation schedule displayed on the public website of the Sui Foundation and accessible via public API endpoints is precisely accurate. The firm's robust statement came as a rebuttal to reports from South Korean news platforms TechM and Block Media stating that the South Korean Financial Supervisory Service (FSS) is preparing to probe into the Foundation.
According to sources, the FSS plans to examine the Sui token distribution after allegations by Representative Min Byeong-deok of the Democratic Party of Korea. He asserted that the Sui Foundation profited themselves from staking coins, which should've stayed in non-circulating supply. Furthermore, Min alleged that the Foundation inflated the circulation amount, causing the Sui token's value to plummet.
The South Korean authorities have intensively increased their regulatory actions on cryptocurrencies, given the collapse of Do Kwon's Terra Money ecosystem in May 2022. The FSS anticipates implementing an extensive set of crypto regulations as soon as January next year. Despite attempts to reach the Sui Foundation for additional comments, no immediate response has been received.
Published At
10/19/2023 3:11:10 AM
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