Sui Foundation Refutes Alleged Token Supply Manipulation

The Sui Foundation has faced backflash following a recent allegation about token supply manipulation. $SUI token hit its all-time low following the news.

What Happened?

The Sui network is currently under probe for manipulating token supply, according to the media sources. Member of the Democratic Party Min Byeong-deok questioned the plunge of $SUI coins, claiming that the team behind lied about the circulating supply.

The representative added that the Sui Foundation ‘received self-interest by staking (depositing) the locked-up amount and sold it to increase circulation.’ He also questioned the role of Daksa guideline in this case and criticized the inaction of the competent authority.

In response to Min’s criticism, Director of the Financial Supervisory Service (FSS)  Lee Bok-hyun said the agency would conduct an investigation on the distribution of $SUI issued by the Sui Foundation. However, he noted that the Virtual Asset User Protection Act ‘is insufficient to control the primary market and exchanges,’ and suggested more discussions ‘in the second legislation.’

Sui Foundation’s Reaction

In an X post on Oct. 18, the Sui Foundation refuted the latest allegations.

‘The unfounded and materially false statements surrounding the supply of SUI tokens need to be addressed. There has never been any sale of SUI tokens by the Foundation after the initial Community Access Program (CAP) distributions.’

Despite the team’s explanation, the price of $SUI took a nose dive and hit its all-time low. $SUI is currently trading at $0.3671, down 9.82% in a week.

In June 2023, a member of the Sui community raised concerns that the Sui Foundation may have secretly sold a portion of staking rewards on Binance. The community member, @defisquared, sourced on-chain data suggesting that about $2.5 million worth of SUI coins were moved from the Sui Foundation’s address to Binance on May 31, 2023.

@defisquared also noted that the Sui Foundation had not provided any updates on the transfer or responded to requests for a daily schedule of token unlocking.