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SUI, one of the long-awaited blockchain token projects in the crypto community, finally launched earlier today. However, contrary to expectations, SUI has recorded a significant plunge in price as the trading went live on multiple exchanges.
Over the past 4 hours since its launch, the token has declined by more than 30%. This price action disappointed traders who expected the token to only record a continuous upward trend following its launch, as often happens during these events.
Trading Goes Live On Exchanges
The token is now live on major exchanges in the crypto market, such as Binance, KuCoin, ByBit, and so on. The token can now be bought and sold against other cryptocurrencies and fiat currencies, including Bitcoin, USDT, TUSD, EUR, BNB, and TRY.
According to a Binance blog post about the SUI listing, traders will not pay maker fees on SUI/USDT until further announcements.
Chinese crypto journalist Colin Wu reported that the official team behind the SUI coin has demanded that exchanges should not launch SUI-based perpetual futures contracts. However, exchanges, including, Bybit, OKX, and KuCoin, launched several SUI trading pairs.
SUI Plunges Over 30%
Interestingly, the token has declined by over 30% following its trading launch on various crypto exchanges after its initial surge of over 1,000% at launch. The newborn asset currently trades for $1.53 at the time of writing down by 35%.
SUI currently has a 24-low of $1.33 and a 24-high of $3.34, according to data from CoinMarketCap. Regardless of the market decline, the asset’s trading volume is still up and at a value of nearly $1 million, according to CoinMarketCap.
SUI is a blockchain project that aims to create a decentralized platform for secure and efficient data storage and management. It was launched in 2020 by a team of blockchain experts who sought to address the limitations of traditional data storage systems, such as high costs, centralization, and vulnerability to cyber threats.
The blockchain is based on a Proof-of-Stake (PoS) consensus mechanism, which allows users to stake their tokens to participate in the network’s validation process and earn rewards for their contributions.
Though several factors could be tied to the plummet in SUI following its launch on exchanges. However, a few reasons could be the supply and demand dynamics and traders’ and investors’ disappointment.
When a new crypto launches on an exchange, there may be an influx of sell orders as early investors and traders try to take profits. In SUI’s case, those who bought at presale for a low price and public sale may have sold to take a profit.
And if the buying pressure is not strong enough to absorb these sell orders, the price is bound to drop. In addition, some traders and investors may have speculated on the token’s price before its launch on exchanges.
This may have led to inflated and expanded expectations. When the price of SUI failed to meet those expectations, some may have sold off their holdings, contributing to the downward pressure on the price.
Featured image from Unsplash, Chart from TradingView