The Sui Foundation, the team behind the Sui network and its native SUI token, has denied allegations that the firm unlocked SUI staking rewards and "thrown" them into cryptocurrency exchange Binance .
The Foundation pushed back the say in a five-part Twitter thread on June 27, stating that none of the locked or non-circulating tokens, including SUI staking rewards, had been sold:
โSui Foundation has not sold staking rewards or any other non-circulating locked SUI tokens on Binance or otherwise.โ
"All internal token allocations remain subject to and comply with their locks and other transfer restrictions," the foundation added.
The purpose of this communication is to share information about Sui Network tokenomics, including SUI token supply and certain SUI token distributions. Here's what you need to know:
โ Sui Foundation (@SuiFoundation) June 27, 2023
Sui is a decentralized proof-of-stake blockchain. Users can stake their Sui tokens to participate in their proof-of-stake mechanism in exchange for more SUI. There is no minimum period of participation required.
Sui's recent denial was in response to claims by a pseudonymous crypto commenter. @DeFiSquared on a June 27 Twitter threadwhere they accused the Sui Foundation of โdumping *locked* and *non-circulating* SUI rewardsโ on Binance.
New exclusive research on SUI:
Intentionally misrepresented emissions and evidence that the team itself is dumping *locked* and *non-circulating* SUI rewards on Binance. (1/12) pic.twitter.com/jYRyeTFY56
โ DeFi^2 (@DefiSquared) June 27, 2023
While Sui said that specific transactions were subject to a "contractual lock," DeFi Squared said that SUI tokens could be unlocked "without restrictions."
The DeFi-focused expert claimed that the Sui Foundation wallet address โ0x341fโ transferred 3.125 million of the total 27 million SUI. in bet rewards to three separate addresses, which were later transferred to Binance.
The specific transaction referred to was a payment subject to a contractual block.https://t.co/ViYxQoJMos
โ Sui Foundation (@SuiFoundation) June 27, 2023
DeFi Squared claimed that this process happened many times before โmostโ of it ended up on Binance:
โWhile the amounts are split many times, most of it ultimately ends up on Binance. This could be to obfuscate the sale, or perhaps because it's being split between different team members. But regardless, most of it makes it to Binance in the end."
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The commentator saying their โcuriosity was piquedโ in May by the โseemingly endless selling pressureโ of SUI, while they did not publish a separate issuance chart from the Binance launchpad, which was allegedly not legitimate. In particular, they claimed that the foundation is inflating the supply of the SUI token roughly 20% month to month for non-foundation token holders:
โThis is higher than the inflation rate of the hyperinflationary Venezuelan bolivar in 2022.โ
Sui's blockchain is designed to offer users high transaction performance at low fees, according to Mysten Labs, the creators of the Sui Foundation.
The SUI token currently has a market capitalization of $427.7 million out of a circulating supply of around 604 million tokens. according to CoinMarketCap. SUI is trading at $0.70 at press time, down 2.4% in the last 24 hours.
The Sui Foundation saying will soon publish a "detailed projection" of the token launch schedule.
The next unlock of 61 million tokens ($43 million) is scheduled for June 3. according Tokenomics Dashboard Token Unlocks.
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