Crypto News– SUI, the native token of the proof-of-stake (PoS) blockchain sharing its name, experienced a significant drop over the past 24 hours, hitting an all-time low of $0.367 during the early hours of Wednesday.
SUI Hits All-Time Low; Foundation Counters Unsubstantiated Claims of Token Manipulation
Although the altcoin managed to regain some ground, reaching $0.377 at the time of this report, it still marked a 5.5% decline in value for the day. SUI has faced an 8.7% decrease over the course of the past week, according to CoinGecko. Launched in May of this year, the Sui blockchain is positioned as a pioneering Layer 1 blockchain and smart contract platform meticulously designed to facilitate fast, private, secure, and inclusive digital asset ownership.
The SUI token serves multiple purposes, including covering transaction gas fees, staking, and playing a role in network governance. As per the Foundation’s information, half of the token supply, which is capped at 10 billion, is earmarked for the Community Reserve—a fund under the management of the Sui Foundation. The remaining tokens are distributed among early contributors, investors, the network’s principal developer Mystem Labs, and the Community Access Program.
This downturn comes amid reports suggesting that the Sui Foundation had manipulated the supply of SUI tokens. In response, the Foundation refuted these claims in a statement provided to Decrypt. A spokesperson strongly dismissed the allegations as “unfounded and materially false statements concerning the supply of SUI tokens,” emphasizing that, “Contrary to recent speculation, there has been no sale of SUI tokens by the Foundation following the initial Community Access Program (CAP) distributions.”
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