Breaking: SUI Supply Faces 66% Sell-Off Amid Crypto Chaos!

Key Points:

• 66% of SUI token supply held by market makers (MMs) raises concerns about potential impact on price and market dynamics.
• Large portion of circulating supply held by MMs who need to sell to hedge options positions, leading to potential risks for investors.

Recent data has revealed that a significant proportion of the SUI token supply might be sold out, with market makers (MMs) holding approximately 66% of the circulating supply.

This concerning development has raised worries among investors and traders about the potential impact on the SUI token’s price and market dynamics. In this article, we will examine the reasons behind this situation and what it could mean for the future of the token.

SUI has reportedly allocated about 4% of its total supply to MMs, which translates to an additional 400 million tokens being added to the circulating supply. However, some observers argue that the actual number of tokens allocated is closer to 288 million, which would mean that MMs hold approximately 54% of the circulating supply. This means that the circulating supply of SUI tokens available to investors is limited and that MMs have the majority of the tokens in circulation.

So, why do MMs hold such a significant proportion of the SUI token supply? The initial public circulation of SUI tokens stands at around 200 million due to the vesting schedules implemented by exchanges like OKX and Kucoin. As a result, a large portion of the circulating supply is held by MMs, which need to sell their holdings to hedge their options positions. This concentration of SUI tokens in the hands of MMs has led to concerns about the potential impact on the token’s price and market dynamics. If a significant percentage of the supply is sold out, it could lead to increased price volatility and potentially have a negative effect on the token’s value. This has prompted some market participants to advise caution when bidding on tokens.

Given this situation, it is important for investors and traders to understand token allocation and supply dynamics when evaluating digital assets. The large percentage of tokens held by MMs could create potential risks for those looking to gain exposure to the SUI token. As such, it is crucial to exercise caution when investing in SUI tokens and to keep a close eye on market developments in the coming months.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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