Sui and the Korean regulatory authorities are engaged in a fierce battle is this the most dangerous moment for the project?

Fierce Battle Between Sui and Korean Regulatory Authorities Is This the Project's Most Dangerous Moment?

Recently, the controversy between the Sui project and the Financial Supervisory Service of South Korea has become one of the focal points in the cryptocurrency industry. The two parties have engaged in heated debates regarding the Sui project and its assets, which even affected the token price. In the following text, we will take stock of this matter.

1. Sui faces investigation by South Korean regulators, project questioned as a scam

Recently, high-level officials in South Korea have targeted Sui.

Firstly, according to reports from Coingraph, the Head of the Financial Supervisory Service of South Korea, Lee Bokhyun, stated that they will investigate Sui to determine if it is a scam. The regulatory agency pointed out that the sharp decline in the price of the SUI token is mainly due to its exaggerated circulation. In addition, Min Byung-deok, a Democratic Party lawmaker, criticized the lack of action from the Digital Asset Exchange Association (DAXA) and raised concerns about the circulation of Sui. Director Lee responded by stating that the Financial Supervisory Service will conduct an investigation and take appropriate action.

In response to this, the Sui Foundation addressed the issue on social media, stating that they have been cooperating fully with DAXA and its members to ensure complete compliance and transparency. The Foundation made it clear that no SUI tokens have been sold since the distribution of the Community Access Program (CAP). Furthermore, the Sui Foundation also stated that the token circulation supply plan displayed on its public website and public API is accurate, and any token transfers can be openly viewed and verified on the blockchain.

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So, why did Sui catch the attention of the Financial Supervisory Service of South Korea? We can get some clues from the historical data of the SUI token.

2. SUI price plummets in the past six months, further shaken by regulatory crisis

The historical peak price of SUI was over 80% lower six months after reaching its peak. However, let’s first take a look at the historical performance of Sui.

From the historical data, we can see that the highest price of the Sui token was $2.16, which occurred approximately six months ago on May 3, 2023. The current price is only $0.378977, which represents a drop of 82.48% from the historical high. This indicates that the Sui token has undergone significant price adjustments over the past six months, raising doubts about its true value. The historical lowest price was $0.364846, which occurred on October 19, 2023, as a market reaction to the doubts raised by the Financial Supervisory Service of South Korea. The market is highly sensitive to the attitudes and actions of regulatory agencies, especially in the cryptocurrency field.

When a project is questioned or investigated by regulatory authorities, investors may choose to withdraw their investments due to risk aversion, leading to a price drop. Despite facing controversy, the Sui project emphasizes its cooperation with relevant institutions, as well as its transparency and compliance, in its public statements. This may be an effort to stabilize market sentiment and restore investor confidence. However, from a data perspective, these efforts may not have fully achieved the expected results.

Meanwhile, the 24-hour trading volume of Sui tokens is $47,550,433, with a market capitalization of $325,773,760, resulting in a volume-to-market-cap ratio of 0.1494. This indicates some trading activity in the market, suggesting that there is still attention on Sui tokens. However, the significant price decline may reflect market concerns or uncertainties.

Three, Sui Official Continues to Make Positive Progress Despite South Korean Regulatory Disturbances

Currently, the Sui project has not yet passed a period of stability in relation to the South Korean Financial Supervisory Service. From recent reports, let’s learn about the recent situation and background of the Sui project.

1. Development of the Sui ecosystem:

Mysten Labs, as the development team of Sui, has recently launched frequent incentive activities aimed at promoting its ecosystem development. The Bullshark Quest 2 and Bullshark Quests 3 activities focus on DeFi dApp interaction and the gaming industry, intending to expand its market influence. In addition, the Sui ecosystem has steadily developed over the past few months, with network TVL in October exceeding $50 million, reaching a record high.

 

2. Collaboration with market makers:

The Sui Foundation has recently repurchased a large amount of Sui tokens from external market makers. In addition to the previously announced 117 million SUI, Sui has transferred an additional 40 million SUI from external market makers to the ecosystem and community development, bringing the total SUI amount for ecosystem growth to 157 million.

3. Funding plan of the Sui Foundation:

The Sui Foundation has announced the Grants list, with a total of 15 projects receiving $1.06 million in funding. These projects cover various core areas such as gaming, DeFi, commerce, and tools, and the funds will be used to promote the adoption and development of Sui.

Considering the above information, we can see that despite the controversy between the Sui project and the South Korean Financial Supervisory Service, the Sui project itself is actively promoting the development of its ecosystem, collaborating with various parties, and striving to bring value to the community and users.

Four, Summary: While users are entertained, they should return to reality in investment decisions.

As observers, how should we view this event?

In the field of digital currencies, every project faces various challenges and controversies. Recently, the Sui project and its dispute with the Korean Financial Supervisory Service have become the focus of the market. As neutral observers, how should we approach this situation?

Firstly, we must acknowledge that any emerging technology or project may encounter external scrutiny and challenges during its development process. This is normal because new things often disrupt existing rules and frameworks, attracting attention and concerns from all parties. The dispute between the Sui project and the Korean Financial Supervisory Service can also be seen as a part of this process.

Secondly, when it comes to the specific situation of the Sui project, we should maintain a calm and rational attitude. Based on the current information, both sides have their own perspectives and positions. The Korean Financial Supervisory Service’s doubts about Sui may stem from its regulatory responsibility and protection of consumer rights. On the other hand, the Sui project has presented its own response and explanation, emphasizing its transparency and compliance. As observers, we should wait for more facts and evidence instead of blindly taking sides.

In addition, we should also see that despite the controversies surrounding the Sui project, its efforts and achievements in ecological development are evident. This indicates that the Sui project itself has value and potential worth the attention of the market and investors.

Lastly, for investors in the digital currency market, they should conduct thorough research and understanding of their investments. All investments carry risks, and in a market full of variables and uncertainties, these risks are more pronounced. Therefore, investors should focus on the long-term development and value of the project rather than short-term disputes and controversies.

In conclusion, as neutral observers, we should maintain an open and objective attitude towards the dispute between the Sui project and the Korean Financial Supervisory Service, focusing on the truth of the matter and the long-term development of the project instead of being swayed by short-term affairs.

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