According to Decrypt: The SUI token, native to its eponymous proof-of-stake blockchain, has witnessed a significant slump, reaching an all-time low of $0.367. This comes in the wake of accusations by South Korean regulators concerning SUI token manipulation, which the Foundation has since labeled as "materially false" and "unfounded."
Over the last 24 hours, the token value managed a slight recovery to $0.377, marking a 5.5% decline on the day and an 8.7% drop over the week. Notably, the SUI blockchain, which debuted in May this year, stands as a unique Layer 1 blockchain and smart contract platform aimed to ensure secure, fast, private and universally accessible digital asset ownership.
Claims of manipulation surround allegations that the SUI Foundation tampered with the SUI token supply. The Foundation, however, vehemently denied these allegations, clarifying that there have been no SUI token sales by the Foundation post the initial Community Access Program (CAP) distributions.
Accusations by Representative Min Byeong-deok of the Democratic Party of Korea suggest that the Sui Foundation manipulated locked-up SUI coin reserves through staking for profit while inflating the market with additional coins, consequently increasing circulating supply.
Min criticized the Digital Asset eXchange Alliance (DAXA) for their inaction over the SUI price drop of 67.1% in five months following listings on major local exchanges, causing significant investor discontent.
Chairman Lee Bok-hyun of the South Korean Financial Supervisory Service (FSS) has stated that any confirmed allegations of distribution volume manipulation through staking or unfair disclosure will prompt inspection by the regulator. As of the time of this writing, the FSS has not issued any comments on the matter.
