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The price of the SUI token plummeted after allegations of supply manipulation from regulatory officials in South Korea.

Sui's native SUI token has struggled to regain ground after plunging more than 9% amid allegations from South Korean regulators, which have accused the Sui Foundation of manipulating the supply of the token for its own gain.

SUI token gained a little under 1% in the last 24 hours after falling from $0.41 on Oct. 16 to new lows of $0.37 on Oct. 18. Current prices mark a 7% decline in just two days, according to data from CoinGecko.

*The price of the SUI token has struggled to regain ground amid allegations of supply manipulation. Source: CoinGecko*

In an Oct. 18 post to X (formerly known as Twitter), the Sui Foundation — the organization behind layer-1 blockchain Sui — slammed the allegations of supply manipulation as “unfounded and materially false.”

“We want to address some inaccuracies that have been reported today,” said the Sui Foundation.

"The unfounded and materially false statements surrounding the supply of SUI tokens need to be addressed. There has never been any sale of SUI tokens by the Foundation after the initial Community Access Program (CAP) distributions. Period,” it explained.

We want to address some inaccuracies that have been reported today.

Sui Foundation has been and remains committed to cooperating with DAXA and its member exchanges in the spirit of full compliance and transparency.

The unfounded and materially false statements surrounding the…
— Sui Foundation (@SuiFoundation) October 17, 2023

“The circulating supply schedule displayed on the Sui Foundation public website and available through the public API endpoints is accurate.”

The Sui Foundation’s stalwart post came in response to a reports from South Korean news outlets TechM and Block Media, which said that regulators from the country had launched an investigation into the Sui Foundation.

According to the reports, the South Korean Financial Supervisory Service (FSS) said it would soon launch an investigation into the distribution of the Sui token, following allegations made by a Representative Min Byeong-deok, a lawmaker from the Democratic Party of Korea.

Rep. Min claimed that the Sui Foundation had paid itself interest by staking coins that should have remained in the non-circulating supply.

"It has fallen more than 67% in the five months since listing. The issuer, Sui Foundation, received self-interest by staking (depositing) the locked-up amount and sold it to increase circulation,” Rep. Min added.

Additionally, Rep. Min alleged that the reason for why the Sui token had plummeted was because the foundation had “lied about the amount in circulation.”

South Korean lawmakers have ramped up their efforts to better regulate crypto activity in the country, following the collapse of Do Kwon’s Terra Money ecosystem in May, 2022. As such, the FSS expects to introduce a comprehensive set of crypto legislation as early as Jan. next year.

Cointelegraph contacted the Sui Foundation for further comment but did not receive an immediate response.

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Sui Foundation denies it sold locked staking rewards on Binance

June 28, 2023 Coin Telegraph

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Sui was accused of dumping locked and non-circulating staked SUI tokens on Binance.

The team behind the Sui network and its native SUI token has denied allegations that they unlocked SUI staking rewards and “dumped” them on cryptocurrency exchange Binance .

The Sui Foundation knocked back the claim in a five-part Twitter thread on June 27, stating that none of the locked or non-circulating tokens, including SUI staking rewards, had been sold:

"Sui Foundation has not sold staking rewards or any other tokens from locked and non-circulating staked SUI on Binance or otherwise."

"All insider token allocations remain subject to and compliant with their lock ups and other restrictions on transfer,” the foundation added.

The purpose of this communication is to share information regarding the tokenomics of the Sui Network including the SUI token supply and certain distributions of SUI tokens. Here’s what you need to know:
— Sui Foundation (@SuiFoundation) June 27, 2023

Sui is a decentralized proof-of-stake blockchain. Users can stake their Sui tokens to participate in its proof-of-stake mechanism in exchange for more SUI. No minimum staking period is required.

Sui’s recent denial was in response to claims by pseudonymous crypto commentator DeFiSquared in a June 27 Twitter thread, where they accused the Sui Foundation of “dumping rewards from *locked* and *non-circulating* staked SUI” on Binance.

Exclusive new research on SUI:

Intentionally misrepresented emissions and proof the team themselves are dumping rewards from *locked* and *non-circulating* staked SUI onto Binance. (1/12) pic.twitter.com/jYRyeTFY56
— DeFi^2 (@DefiSquared) June 27, 2023

While Sui said the specific transactions were subject to a “contractual lockup,” DeFi Squared said the SUI tokens could be unlocked “without restriction.”

The DeFi-focused pundit claimed that Sui Foundation’s wallet address, “0x341f” transferred 3.125 million of the total 27 million SUI in staking rewards to three separate addresses, which were then transferred to Binance.

The specific transaction referenced was a payment subject to a contractual lockup.https://t.co/ViYxQoJMos
— Sui Foundation (@SuiFoundation) June 27, 2023

DeFi Squared claimed this process occurred many times before “most of it” ended up on Binance:

“While the amounts are split many times, most of it ends up at Binance eventually. This could either be to obfuscate the selling, or perhaps because it is being split between different team members. But regardless, most of it is reaching Binance in the end.”

The commentator said their “curiosity was piqued” in May by SUI’s “seemingly endless sell pressure” while failing to publish an emissions chart separate from Binance’s launchpad, which supposedly wasn’t legitimate. Notably, they claimed the foundation is inflating the supply of the SUI token by roughly 20% month-on-month for non-foundation token holders:

“This is higher than the inflation rate of the hyperinflating Venezuelan Bolivar in 2022.”

Sui's blockchain is designed to offer users high transaction throughput at low fees, according to Mysten Labs, the creators of the Sui Foundation.

The SUI token currently has a market cap of $427.7 million, from a circulating supply of about 604 million tokens, according to CoinMarketCap. SUI is trading for $0.70 at the time of publication, down 2.4% in the past 24 hours.

The Sui Foundation said it will publish a “detailed projection” of the token release schedule soon.

The next unlock of 61 million tokens ($43 million) is scheduled for June 3, according to tokenomics dashboard Token Unlocks.

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