SUI Faces Steep 65% Drop Post-Mainnet Launch Amidst Community Sell-Off

Key Points:

• SUI coin’s value takes a sharp dive, falling 65% from its initial peak since the mainnet launch, causing concerns amid a sell-off from the community reserve fund.
• SUI faces tokenomics ambiguity, security vulnerabilities, and project relocations, leading to a tumultuous path for the coin’s ecosystem, underscoring the complexities and risks of the cryptocurrency market.

The SUI coin has been hit hard, experiencing a staggering 65% price plunge since its mainnet debut over three months ago.

Starting at a peak of $1.4, the coin’s value has tumbled to a mere $0.5 at present, causing concerns within the crypto community. Mr. Steven Zheng, Director of The Block Research, highlights a key factor behind this relentless price decline: the forceful sell-off from the Community Reserve Fund, which SUI announced with a 50% allocation. 

The token’s market capitalization has also been on a downward spiral, plummeting from $740 million to a nadir of $343 million on August 18. This downturn may potentially impact early investors’ expectations for returns, with their anticipated payouts now extending to June 2024. Nevertheless, Zheng emphasizes that these early backers could still yield significant profits, potentially in the millions.

Token Unlocks data reveals that this token will undergo monthly unlocks of around 61 million SUI until October 2023. Subsequently, the supply of SUI will double from 861 million to 1.9 billion SUI in November, signaling a substantial expansion.

Despite its listing on Binance, the Sui ecosystem has yet to showcase robust growth. Furthermore, concerns have arisen regarding tokenomics ambiguity, particularly after revelations that the team sold locked staking tokens on Binance. Security vulnerabilities, as detected by CertiK, have added to the project’s challenges, with the blockchain at risk of shutdown. Moreover, many projects have begun migrating to other blockchains, expressing uncertainty in the platform prospects.

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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