Sui’s native cryptocurrency, the SUI token, has had difficulty recovering its value following a 9% decrease. This drop was precipitated by allegations from South Korean officials that the Sui Foundation was manipulating the token’s supply for its own gain.
The SUI token has only gained little in the last 24 hours, gaining by less than 1% in value from $0.41 on October 16 to new lows of $0.37 on October 18, representing a 7% loss in just two days, according to CoinGecko data.
The Sui Foundation, the entity behind layer-1 blockchain Sui, condemned the charges of supply manipulation in a Twitter tweet on October 18 as “unfounded and materially false.”
“The unfounded and materially false claims about the supply of SUI tokens must be addressed.” The Foundation has never sold SUI tokens after the inaugural Community Access Program (CAP) deliveries. “Period,” it continued.
The Sui Foundation was outraged by the revelation reported by South Korean media sites TechM and Block Media. According to these claims, South Korean regulators have launched an investigation into the Sui Foundation.
According to these reports, the South Korean Financial Supervisory Service (FSS) intends to investigate the distribution of the Sui token. This probe originates from charges made by Democratic Party of Korea Representative Min Byeong-Seok.
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