Secret sales of staking rewards: End of the road for Sui Network?

Thu 29 Jun 2023 ▪ 3 min of reading ▪ by Mikaia A.
Getting informed Trading

SUI hasn’t even been up and running for two months, and a controversy has already arisen. It is said that the project’s promoters have used investors’ assets without their knowledge. The Sui Foundation denies it all. Let’s get to the bottom of it!

Detective investigating SUI

SUI, a new high-potential crypto project?$

The launch of Sui Network by Mysten Labs last May left the crypto community speechless. As soon as it was released, cryptocurrency exchanges such as Bybit, OKX, Binance and Kucoin immediately listed it.

But these 8 weeks of peaceful existence are likely to come to an end. Or at least, the rest of the SUI adventure will be eccentric.

The team behind Sui Network and the SUI token have been accused of unlocking and selling SUI staking rewards on Binance.

Sui Foundation immediately denied these rumours.

Sui Foundation’s denial

“Sui Foundation has not sold staking rewards or other tokens from blocked or uncirculated SUI on Binance or any other [exchange]. All insider token allocations remain subject to and compliant with their locks and other transfer restrictions.”

Decentralized blockchain PoS Sui may advocate transparency, but it seems to lack the evidence to refute these allegations of non-consensual sales.

However, DefiSquared, the revealer of secrecy, is heavily armed with evidence.

Evidence from DefiSquared

As a response, the SUI Network team put forward this modest argument: “a payment subject to contractual lock-in”.

What do you think sparked his curiosity?

“My curiosity was piqued last month by SUI’s seemingly endless sales pressure. Curiously, CoinMarketCap only showed new issues once a month, from its launchpad. Meanwhile, the SUI team refuses to publish an actual issue chart. A strange choice for a legitimate project.”

DefiSquared’s Twitter thread also highlighted a Sui Foundation habit of sharing SUI issue data taken from Binance’s Launchpad. And paradoxically, it criticizes the veracity of these statistics, considering that “the real model doesn’t necessarily follow this graph and won’t be published”.

Or :

“Continuous staking issues amount to around 33,000,000 additional SUIs issued per month. Of the 600 million SUI in circulation, around 250 million are unfounded SUI, which means that these issues represent a 10% increase in unfounded SUI in circulation.”

Which begs the question: is SUI also a shitcoin that would tarnish bitcoin’s image?

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.