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SUI Foundation Faces Accusations
The Sui Foundation has denied claims of manipulating the supply of its $SUI token, asserting that it has never liquidated any $SUI tokens.
Earlier, the South Korean Financial Supervisory Service (FSS) announced that it would be investigating the matter, prompted by suspicions surrounding the Sui team's potential supply manipulation.
SUI FOUNDATION RESPONDS TO ACCUSATIONS IT LIED ABOUT $SUI SUPPLY
— BSC News (@BSCNews) October 17, 2023
Following accusations made by a member of the Democratic Party of Korea [as reported by @with_blockmedia and @TECHMmedia] which alleged that the @SuiFoundation lied about the amount of SUI in circulation and… pic.twitter.com/MNFVjP17Lx
During a Government Affairs Committee audit on Oct. 17, Democratic Party lawmaker. Min Byung-deok emphasized concerns over the significant depreciation in Sui Coin's value since its May 2023 listing.
Lawmaker Min Byung-deok highlighted the dissemination of false information regarding Sui Coin's circulating supply as the primary catalyst for the coin's decline. He further alleged that the Sui Foundation capitalized on locked-up holdings of the token through staking, consequently introducing more coins into circulation.
In response to the allegations, FSS Director Lee Bok-hyun acknowledged the significance of the issues related to Sui Coin's distribution volume and disclosure practices.
Director Lee clarified:
"If there is manipulation of distribution volume through staking or unfair disclosure, we will consult and take action."
Sui Foundation's Statement and Claims of Transparency
The Sui Foundation firmly denied the accusations in a statement provided to BSC News, emphasizing their commitment to cooperation with DAXA and its member exchanges while assuring full compliance and transparency.
“The Sui Foundation rejects unfounded and materially false statements surrounding the supply of SUI tokens. Contrary to recent conjecture, there has never been any sale of SUI tokens by the Foundation after the initial Community Access Program (CAP) distributions,” The Sui Foundation told BSC News.
The foundation reiterated that it had never liquidated SUI tokens beyond the initial Community Access Program (CAP) distributions.
As per the Foundation, SUI token transfers by the Sui Foundation are publicly visible and verifiable on the blockchain, and the SUI token circulating supply schedule has been publicly communicated.
“The Sui Foundation has always been transparent, including the recently announced reclamation of 157 Million Sui from external market makers now designated for accelerated ecosystem growth. Further, Sui Foundation is committed to ensuring that all operations are compliant, transparent, and in line with the publicly communicated emissions schedule,” Sui Foundation said.
Data from token.unlocks shed light on the financial aspects, revealing that around $844.39 million worth of tokens have been unlocked since the token's issuance.
While the Sui Foundation's denial has clarified some aspects, the ongoing saga leaves room for more revelations and potential developments. It remains uncertain whether this chapter of the cryptocurrency saga has reached its conclusion or if further accusations will follow.