In recent days, the dispute between the Sui project and the Financial Supervisory Service of South Korea has become a focal point in the field of digital currencies. Both parties have engaged in heated debates regarding the Sui project and its assets, even affecting the token’s price. The following text will provide an overview of this matter.
Recently, high-level officials in South Korea have taken action against Sui.
Firstly, according to a report by Coingraph, Lee Bo-hyun, the head of the Financial Supervisory Service (FSS) in South Korea, has announced an investigation into Sui to determine whether it is a scam. Regulatory authorities have pointed out that the price of the Sui token has sharply declined, primarily due to its misreporting of its circulating supply. In addition, Min Byung-deuk, a member of the Democratic Party of Korea, criticized the inaction of the Digital Asset Exchange Association (DAXA) regarding the circulation issue of Sui. Director Lee responded to this by stating that the FSS will conduct an investigation and take appropriate actions in response.
In response to this, the Sui Foundation stated on social media platforms that they have consistently collaborated extensively with DAXA and its members, maintaining full compliance and transparency. The foundation explicitly stated that no SUI tokens have been sold since the allocation through the Community Access Program (CAP). Furthermore, the Sui Foundation asserted that the token circulation supply plan displayed on its public website and public API is accurate, and any token transfers can be openly viewed and verified on the blockchain.
So why has Sui attracted the attention of the Financial Supervisory Service of South Korea? We can glean some insights from the historical data of SUI tokens.
2、The price of SUI has experienced a sharp decline over the past six months, and in recent times, it has been further shaken by regulatory concerns.
The historical peak price of SUI, which was reached six months ago, has dropped by more than 80% since then, a truly distressing decline. However, let us first take a look at SUI’s historical performance.
Based on historical data, the highest recorded price for the Sui token was $2.16, which occurred approximately 6 months ago on May 3, 2023. However, its current price is only $0.378977, representing a significant drop of 82.48% from its historical peak. This indicates that the Sui token has undergone substantial price adjustments over the past 6 months, raising doubts about its true value. The token’s historical lowest price was $0.364846, observed on October 19, 2023, in response to regulatory concerns raised by the Korean Financial Supervisory Service. The cryptocurrency market is highly sensitive to the attitudes and actions of regulatory bodies, particularly in the realm of digital assets.
When a project comes under scrutiny or investigation by regulatory authorities, investors may opt to withdraw their investments due to risk aversion, leading to a decline in prices. Despite facing controversy, Sui project has emphasized its cooperation with relevant institutions, transparency, and compliance in its public statements. This could be seen as their effort to stabilize market sentiment and restore investor confidence. However, from a data perspective, these efforts may not have fully achieved the expected results yet.
Nevertheless, the 24-hour trading volume of Sui tokens stands at $47,550,433, with a market capitalization of $325,773,760. The ratio of trading volume to market capitalization is 0.1494, indicating a certain level of trading activity in the market. This suggests that there is still some attention on Sui tokens in the market. However, the significant price drop may reflect market concerns or uncertainty surrounding the project.
3、The Sui officialdom continues to actively pursue various initiatives, undeterred by South Korean regulatory concerns.
The Sui project is currently in a contentious phase with the Financial Supervisory Service of South Korea, and recent reports shed light on the project’s current status and background.
1、Development of the Sui Ecosystem:
Mysten Labs, as the development team behind Sui, has recently been actively launching incentive campaigns aimed at fostering the growth of its ecosystem. Their Bullshark Quest 2 and Bullshark Quests 3 initiatives are designed to focus on DeFi dApp interactions and the gaming sector, with the intention of expanding their market influence. Furthermore, over the past few months, the Sui ecosystem has seen steady growth, with the network’s TVL (Total Value Locked) surpassing $50 million in October, reaching a record high.