SUI Coin Faces Steep 65% Price Plunge Since Mainnet Launch, Raises Concerns
Crypto News – The SUI cryptocurrency has endured a significant setback, undergoing a remarkable 65% plunge in its price since its mainnet launch just over three months ago.
Having started at its peak value of $1.4, the coin’s valuation has now slumped to a mere $0.5, triggering concerns within the cryptocurrency community. Mr. Steven Zheng, the Director of The Block Research, has shed light on a crucial factor contributing to this relentless downward spiral: a forceful sell-off from the Community Reserve Fund, which SUI introduced with a substantial 50% allocation.
The market capitalization of the token has also experienced a downward trajectory, dropping from $740 million to a low point of $343 million by August 18. This downturn could potentially impact the expectations of early investors in terms of their returns, as their projected payouts now extend until June 2024. Nevertheless, Zheng underscores that these initial supporters could still attain noteworthy profits, potentially reaching into the millions.
Insights from the Token Unlocks data divulge that the token will undergo monthly unlocking of approximately 61 million SUI units until October 2023. Subsequently, the supply of SUI will double, growing from 861 million to 1.9 billion SUI by November, indicating a substantial expansion.
Despite its listing on Binance, the Sui ecosystem has not yet demonstrated robust growth. Furthermore, concerns have emerged regarding the ambiguity surrounding its tokenomics, particularly following revelations that the team sold locked staking tokens on the Binance platform. Security vulnerabilities, as identified by CertiK, have compounded the challenges faced by the project, putting the blockchain at the risk of potential shutdown. Moreover, numerous projects have initiated migration to other blockchains, reflecting uncertainty in the platform’s prospects.
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