After its launch, Sui token’s value dropped by about 70%. Currently, it has fallen 36.1% in the last 24 hours. Some people are worried about the number of SUI tokens that market makers have. They think that market makers were behind the large sale of SUI tokens after the launch.
Bought some $Sui at $1,27 AVG. Put 2 limits on 1,5 and 1,8.
I fell that MM sold big part of their tokens and dump the price on the first candle.
DYOR, I have stop loss at $1,21. pic.twitter.com/ug9DYWoEY7
— đ°đđ°đčđŒđœ (@nobrainflip) May 3, 2023
Reports indicate that market makers have been given 4% of the total SUI token supply, which means that the number of tokens in circulation has increased by 400 million. However, there are concerns that the actual amount of tokens allocated to market makers could be closer to 75%.
Additionally, since exchanges such as OKX and Kucoin have set up vesting schedules, only around 200 million SUI tokens are currently in public circulation. This means that market makers hold a significant portion of the tokens that are currently in circulation. Furthermore, market makers have to sell their tokens to hedge their option bets.
https://twitter.com/thiccythot_/status/1653754075714928640?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1653754075714928640%7Ctwgr%5E77da42d1738b557355b6bacb7fe4c7247bed422a%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwatcher.guru%2Fnews%2Fsui-token-investors-should-know-about-this-risk
Is the SUI token safe?
Sui Token is a cryptocurrency created by a team of former senior executives and architects from Meta’s Novi digital wallet. This gives the project a lot of credibility. The Sui team also raised $300 million in a successful Series B investment round to support development before the launch of its main network.
SUI Token’s hype might be just investors experiencing FOMO (fear of missing out). The recent surge in Pepe Coin (PEPE) led to its value increasing by more than 400%, making triple-digit investment holders millionaires. However, investors couldn’t sell their PEPE tokens due to liquidity issues. This scenario might be similar to the sentiment around SUI.
Moreover, if the reports regarding market makers holding 75% of the token’s supply are true, it could result in significant price fluctuations and corrections. Nevertheless, there is a possibility that the project has a solid foundation but has experienced a rough beginning. As of now, SUI is trading at $1.38, with a decrease of 0.1% in the last hour.
