SUI Price Volatility Surges Following South Korean Investigation
The Financial Supervisory Service (FSS) of South Korea has raised suspicions of supply manipulation regarding the Sui project's circulating token volume.
SUI Price Volatility Surges Following South Korean Investigation. Photo: Verbolsa
In response to inquiries from lawmaker Min Byung-deok, FSS Director Lee Bok-hyun affirmed the agency's commitment to investigating the alleged supply manipulation of SUI, as reported by blockchain news outlet blockmedia.
Just In: According to blockmedia, the director of the South Korean Financial Supervisory Service responded to a question that if SUI team is manipulating the circulation through staking or improper disclosure, it must be corrected. He will check it after confirming it with the…
— Wu Blockchain (@WuBlockchain) October 17, 2023
During today's parliamentary audit, a member of South Korea's Democratic Party criticized Lee Bok-hyun for failing to protect investors while allowing the listing of "Burger Coins" such as SUI on exchanges.
Min argued that the circulating supply was a contributing factor preventing SUI's price from recovering recently. Furthermore, the lawmaker accused the Sui Foundation of engaging in staking activities to earn interest, subsequently dumping tokens into the market to increase circulation and drive down prices.
Following these criticisms, FSS Governor Lee Bok-hyun acknowledged that if Min Byung-deok's allegations were true, it would constitute a significant issue. He pledged to investigate the matter and review exchange practices through the Korean Blockchain Association (DAXA).
Previously, Sui was accused of "shadow selling" staking rewards from locked SUI on Binance, although the project denied these allegations. At the time, the community also questioned the project's transparency regarding token distribution plans and unlocking schedules.
Immediately after these developments, SUI plummeted nearly 15%, dropping from $0.43 USD to $0.369 USD. In South Korea, SUI is listed on five exchanges including Upbit, Bithumb, Coinone, Kobit, and Gopax.
We want to address some inaccuracies that have been reported today.
— Sui Foundation (@SuiFoundation) October 17, 2023
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…
Chart: 15m SUI/USDT Pair on Binance at 00:00 AM on October 18, 2023
Sui utilizes the Move programming language developed by Facebook, similar to Aptos. In 2022, the project raised $300 million with a valuation peaking at $2 billion. However, SUI has struggled post-mainnet launch, largely due to the pressure from unlocked token sales to the Community Reserve.
In an official statement posted on X platform (Twitter), the Sui Foundation refuted allegations of supply manipulation, staking token sales, and emphasized transparency in token transactions. The Foundation stated it is working closely with DAXA to ensure compliance with South Korean regulations.
