SUI token hits all-time low after facing market manipulation claims

The native token of the Sui blockchain, SUI, touched an all-time low of $0.367 on Wednesday before some recovery. The fall came after fresh allegations of market manipulation surfaced amid a South Korean investigation, accusations that were later denied by the Sui Foundation. 

Sui Foundation rejects claims

The Sui Foundation took to its official handle on X to address market manipulation allegations. It denied any sale of SUI tokens after the initial Community Access Program (CAP) distributions. 

The Foundation stressed on its commitment to transparency and compliance by stating, "The unfounded and materially false statements surrounding the supply of SUI tokens need to be addressed."

In a local South Korean report on Tuesday, officials expressed a need to investigate Sui's supply circulation claims. Lawmaker Min Byeong-deok, member of the Democratic Party of Korea,  criticized the Digital Asset Exchange Joint Consultative Body (DAXA) for its inaction on the allegations. 

In the translated report, the lawmaker is quoted stating,  ""The price of Sui Coin has plummeted, and the main reason is that the circulation amount was lied, but they are not raising the issue." 

Byeong-deok highlighted that SUI has plummeted 67% in five months and a probe might be underway against the foundation and the native token. 

SUI touches all-time low 

In the past 24 hours, SUI price has declined around 4%, and over the last seven days, the drop is of 9%, according to data from CoinGecko. On Wednesday, SUI touched an initial all-time low of $0.367 before a 2% recovery a few hours after. 

At the time of writing, SUI price is hovering in the range of $0.36 and $0.39, recording a 24-hour trading volume of $54 million as per CoinGecko. 

The SUI token’s valuation is likely to remain subdued due to the investigation that could be taken by the South Korean regulators. Up until the allegations settle, the near to medium term outlook remains mostly negative.