South Korean Regulatory Scrutiny Takes Toll on SUI Token’s Price
The native cryptocurrency of Sui, the SUI token, is facing a challenging period as it attempts to recover from a significant drop in value following allegations of supply manipulation by South Korean regulatory officials. The price of the SUI token plummeted by over 9%, leaving investors and the crypto community on edge.
In the past 24 hours, the SUI token has managed to gain back a modest 1% of its value after hitting new lows of $0.37 on October 18, down from $0.41 on October 16. However, this recent uptick has not been sufficient to offset the overall decline of 7% in just two days, according to data sourced from CoinGecko.
The controversy stems from accusations made by South Korean regulators against the Sui Foundation, the organization behind the layer-1 blockchain Sui. Regulatory officials in South Korea have accused the foundation of manipulating the supply of the SUI token for its own benefit, sparking concerns within the crypto community.
On October 18, the Sui Foundation responded to these allegations in a post on social media platform X (formerly known as Twitter). The foundation dismissed the accusations as “unfounded and materially false,” emphasizing its commitment to transparency.
“We want to address some inaccuracies that have been reported today,” stated the Sui Foundation. “The unfounded and materially false statements surrounding the supply of SUI tokens need to be addressed. There has never been any sale of SUI tokens by the Foundation after the initial Community Access Program (CAP) distributions. Period. The circulating supply schedule displayed on the Sui Foundation public website and available through the public API endpoints is accurate.”
The foundation’s staunch denial came in response to reports from South Korean news outlets TechM and Block Media, which claimed that the South Korean Financial Supervisory Service (FSS) is initiating an investigation into the Sui Foundation. Representative Min Byeong-deok, a lawmaker from the Democratic Party of Korea, raised concerns that prompted the regulatory scrutiny.
As the SUI token attempts to recover from this recent setback, the crypto community awaits further developments in the investigation and seeks clarity on the allegations made against the Sui Foundation. The outcome of this regulatory inquiry is likely to have a lasting impact on the SUI token’s trajectory and the reputation of the Sui blockchain. Investors and enthusiasts are advised to stay vigilant as the situation unfolds.
