Sui’s native cryptocurrency, the SUI token, has faced difficulties in recovering its value following a significant drop of over 9%. This decline was triggered by allegations from South Korean regulators who accused the Sui Foundation of manipulating the token’s supply for its own benefit.
The SUI token has only gained slightly in the past 24 hours, increasing by less than 1% in value which had previously dropped from $0.41 on October 16 to a new lows of $0.37 on October 18 and these prices represent a 7% decrease in just two days, as reported by CoinGecko’s data.
In a Twitter post on October 18, the Sui Foundation, the organization behind layer-1 blockchain Sui, criticized the allegations of supply manipulation as “unfounded and materially false.”
“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 added.
The Sui Foundation responded strongly to the news from South Korean media outlets TechM and Block Media. These reports stated that South Korean regulators were starting an inquiry into the Sui Foundation.
According to these reports, the South Korean Financial Supervisory Service (FSS) is planning to investigate how the Sui token is being distributed. This investigation stems from allegations made by Representative Min Byeong-Seok, a member of the Democratic Party of Korea.
Also Read: Sui Foundation Denies Staked Token Sale on Binance
