Waves of concern have swept through the crypto community after Lee Bok-Hyeon, the director of the South Korean Financial Supervisory Service, expressed his intention to investigate SUI, a blockchain token developed by former Meta employees. The main point of concern? Investigating a possible deliberate inflation of the token’s supply. This suspicion stems from BlockMedia, alleging possible manipulation tactics such as staking or unfair disclosure used by the Sui team. The immediate consequence of this news was a significant blow to the token’s valuation, dropping nearly 10% in a single day.
The Sui Foundation wants to address unfounded and materially false statements regarding the supply of SUI tokens. Contrary to recent speculation, there has never been any sale of SUI tokens by the Foundation after the initial distributions of the Community Access Program (CAP).
The Rigorous Refutation by the Sui Foundation
In a direct response to these serious allegations, the Sui Foundation, through an official communication, firmly refuted the accusations. The foundation emphasized its unwavering commitment to transparency and accuracy, particularly in displaying the supply schedule on their public platforms. Furthermore, they clarified that after the initial distributions of the Community Access Program (CAP), there have been no instances of SUI token liquidation by the foundation.
The foundation’s assertion of not selling staking rewards or tokens from locked SUI stakes becomes more significant in light of past criticisms. Specifically, in June, the company had to address accusations from DeFi researcher DefiSquared, who claimed that SUI had misrepresented token emissions and sold tokens on Binance.