The niche cryptocurrency token, Sui, is undergoing a rough patch as its value plummets to unprecedented lows.
As of the latest update on Thursday, SUI’s price has diminished by nearly 1% in 24 hours and has decreased by 9.4% over the week, marking its lowest price point to date.
This downward trajectory has been attributed to news circulating in local channels about a probe by South Korea’s Financial Supervisory Service. The investigation revolves around accusations of manipulation associated with the Sui token.
These claims were spotlighted by a Democratic Party of Korea legislator, Representative Min Byung-deok. He alleges that the Sui Foundation used coins that were meant to be out of circulation to earn interest for itself.
Following this, it’s believed that the foundation augmented Sui’s circulation by offloading the coins, which were earned as interest, into the market.
In light of the accusations, the Sui Foundation swiftly responded with a statement on platform X, vehemently refuting the allegations, labeling them as “baseless and grossly inaccurate.”
The Foundation underscored that, post the Community Access Program (CAP) distributions, they hadn’t sold any Sui tokens. They asserted that the circulating supply timeline presented on their official website was truthful.
The ensuing controversy has led to a precipitous drop in Sui’s market value, triggering anxiety among its investors and the broader community about the potential downfall of the entire Sui initiative.
With Sui’s valuation now at a pivotal juncture, the resolution of the regulatory probe will play a vital role in determining its subsequent trajectory.