Sui engages in a fierce battle with South Korean regulators: Is this the most dangerous moment for the project?

Recently, the dispute between the Sui project and the Financial Supervisory Service of Korea has become one of the focal points in the digital currency field. The two parties have engaged in a heated debate over the Sui project and asset issues, even affecting token prices. The following will summarize this matter.

1. Sui Under Investigation by Korean Regulators, Project Questioned as a Scam

Recently, high-ranking officials in Korea have targeted Sui.

First, according to a report by Coingraph, Lee Bok-hyun, the head of the Financial Supervisory Service of Korea, stated that an investigation into Sui will be conducted to determine whether 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 inflated circulation figures. Additionally, Democratic Party lawmaker Min Byung-deok criticized the inaction of the Digital Asset Exchange Association (DAXA) and pointed out the circulation issues of Sui. In response, Director Lee stated that the Financial Supervisory Service would investigate this matter and take appropriate action.

Live broadcast of the Korean regulatory investigation into Sui

In response, the Sui Foundation stated on social media that it has been fully cooperating with DAXA and its members, maintaining complete compliance and transparency. The foundation clearly stated that no SUI tokens have been sold since the allocation of the Community Access Program (CAP). Furthermore, the Sui Foundation indicated that the token circulation supply plan displayed on its public website and public API is accurate, and any transfers of tokens can be publicly viewed and verified on the blockchain.

So, why has Sui attracted the attention of the Financial Supervisory Service of Korea? We can glean some clues from the historical data of the SUI token.

2. SUI Price Plummets Over 80% in Six Months, Recently Shaken by Regulatory Crisis

The historical peak price of SUI has dropped over 80% in the past six months, which can be described as dismal. However, let's first take a look at Sui's historical performance.

From historical data, we can see that the highest price of the Sui token was $2.16, which occurred about six months ago on May 3, 2023, while its current price is only $0.378977, representing a decline of 82.48% from the historical peak. This indicates that the Sui token has undergone significant price adjustments in the past six months, raising doubts about its true value. Its historical lowest price was $0.364846, which occurred on October 19, 2023, reflecting market performance in response to the questioning by the Financial Supervisory Service of Korea. The market is very sensitive to the attitudes and actions of regulatory agencies, especially in the cryptocurrency field.

Price trend of SUI assets

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

Meanwhile, the 24-hour trading volume of the Sui token is $47,550,433, with a market capitalization of $325,773,760, resulting in a trading volume to market cap ratio of 0.1494. This indicates a certain level of trading activity in the market, suggesting that there is still interest in the Sui token, but the significant price drop may reflect market concerns or uncertainties.

3. Sui Officials Actively Pursuing Various Initiatives, Unperturbed by Korean Regulation

Currently, the dispute between the Sui project and the Financial Supervisory Service of Korea has not yet reached a stable period. From recent reports, let's understand the current situation and background of the Sui project.

1. Development of the Sui Ecosystem:
   Mysten Labs, the development team behind Sui, has recently launched frequent incentive activities aimed at invigorating its ecosystem. The Bullshark Quest 2 and Bullshark Quests 3 activities focus on DeFi dApp interactions and the gaming sector, intending to expand market influence. Additionally, the Sui ecosystem has steadily developed over the past few months, with the network's TVL exceeding $50 million in October, reaching a record high.

Mysten Labs official website page

2. Sui's Collaboration with Market Makers:
   The Sui Foundation has recently repurchased a large number 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 amount of SUI used to promote ecosystem growth to 157 million.

3. Sui Foundation's Grant Program:
   The Sui Foundation announced a list of Grants, with 15 projects receiving a total of $1.06 million in funding. These projects cover multiple core areas, including gaming, DeFi, business, and tools, with funds aimed at promoting the adoption and development of Sui.

Combining the above information, we can see that despite the dispute between the Sui project and the Financial Supervisory Service of Korea, 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.

4. Conclusion: Users Observe While Returning to Reality in Investment Decisions

As observers, how should we view this event?

In the digital currency field, every project faces various challenges and controversies. Recently, the turmoil between the Sui project and the Financial Supervisory Service of Korea has become the focus of the market. As neutral observers, how should we perceive this event?

First, we must recognize that any emerging technology or project may encounter external doubts and challenges during its development. This is normal, as new things often break existing rules and frameworks, attracting attention and concerns from various parties. The turmoil between the Sui project and the Financial Supervisory Service of Korea can also be seen as a part of this process.

Second, regarding the specific situation of the Sui project, we should maintain a calm and rational attitude. From the current information, both parties have their own statements and positions. The Financial Supervisory Service of Korea's doubts about Sui may be based on its regulatory responsibilities and consumer protection. On the other hand, the Sui project has also provided its responses and explanations, emphasizing its transparency and compliance. As observers, we should wait for more facts and evidence rather than blindly take sides.

Furthermore, we should also recognize that despite the controversies faced by the Sui project, its efforts and achievements in ecosystem development are evident. This means that the Sui project itself has certain value and potential, warranting the attention of the market and investors.

Finally, for investors in the digital currency market, they should conduct thorough research and understanding of their investments. Every investment carries risks, and in a market full of variables and uncertainties, these risks become more pronounced. Therefore, investors should focus on the long-term development and value of the project rather than short-term turmoil and controversies.

In summary, as neutral observers, we should maintain an open and objective attitude towards the turmoil between the Sui project and the Financial Supervisory Service of Korea, focusing on the truth of the matter and the long-term development of the project, rather than being swayed by short-term upheavals.