SUI Token Plummets to All-Time Low Amid Manipulation Controversy
The crypto community witnessed another tremor as the price of SUI, the native token of the recently launched Sui blockchain, hit its all-time low. However, amidst this price turbulence, the Sui Foundation fervently denies any wrongdoing related to token manipulation.
Turbulent times for SUI investors
In the early hours of Wednesday, SUI’s price sank to an all-time low of $0.367. If bears breach this support zone, it could trigger further selling pressure and lead to a deeper price decline. At press time, SUI was trading at $0.3764, down 3.3% in the preceding 24 hours.
Furthermore, CoinStats statistics show that SUI lost 8.42% of its value in the last seven days. As a result, many investors are seemingly anxious, particularly those who joined the market after SUI’s well-publicized debut in May.
SUI/USD 30-day price chart (source: CoinStats)
Consequently, the Sui blockchain was touted as a revolution since it was designed to make digital asset ownership accessible, secure, and swift. Moreover, with half its capped $10 billion token supply allocated for community reserves, SUI seemed poised for success.
However, the Sui Foundation has found itself under scrutiny. Allegations arose that it manipulated SUI’s supply, causing the price to decline sharply. Interestingly, these claims point to the foundation benefiting from staking coins meant to remain untouched. Such actions would flood the market, manipulating the circulating supply.
Hence, Representative Min Byung-deok noted   that SUI’s price plummeted by 67.1% within months of listing on major exchanges. Additionally, he criticized the Digital Asset eXchange Alliance (DAXA) for their inaction, comparing their lack of intervention to “leaving the fish to the cat.”
Foundation’s Firm Stand on Integrity
The Sui Foundation quickly defended its actions and reputation in response to these allegations. According to them, claims about manipulating the SUI token supply are “false and misleading.” The foundation firmly stated that SUI tokens have yet to be sold since the initial distributions under the Community Access Program.
We want to address some inaccuracies that have been reported today.
Sui Foundation has been and remains committed to cooperating with DAXA and its member exchanges in the spirit of full compliance and transparency.
The unfounded and materially false statements surrounding the…
— Sui Foundation (@SuiFoundation) October 17, 2023
Furthermore, the foundation emphasized the accuracy of the circulating supply schedule of the SUI token. Displayed on their website and available through public APIs, they reassure investors of their transparency.
The spokesperson added, “Sui Foundation has never liquidated any SUI tokens, including staking rewards.” Significantly, blockchain’s development had contributions from tech leaders from Meta, renowned for their work on the Libra Blockchain.
SUI/USD Technical Analysis
With a rating of -0.24, the Chaikin Money Flow (CMF) is sliding into negative territory, indicating that the SUI token may be under selling pressure. This pattern suggests a drop in demand for the token, which might lead to a decline in its value. With further selling pressure, the token price may fall even lower.
Furthermore, a stochastic RSI of 21.01 indicates that the SUI coin is currently oversold. Consequently, buyers can join the market and increase the token’s price. However, allegations against the Sui token’s management team may cause disarray, thus decreasing the token’s value.
SUI/USD 4-hour price chart (source: TradingView)
In conclusion, SUI’s turbulent journey raises questions about its future. While the foundation denies manipulation, investors remain wary amidst uncertainty.
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