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Cyber Capital founder warns over Sui token’s 84% supply control 

Cyber Capital founder warns over Sui token's 84% supply control  2

Justin Bons appreciated the Sui crypto design but raised two big concerns about the Sui token circulation model.

The Sui crypto token is essential for transactions and rewards within the Sui ecosystem. It facilitates secure transactions, incentivizes users, and can be traded on crypto exchanges for liquidity and potential profit.

On 2 May 2024, Cyber Capital founder Justin Bons shared his opinion on the Sui crypto token and said that Sui has a great design but its token economics is not very transparent. 

According to Bons, Sui tokens have a capped supply of 10 billion and currently 8 billion suit tokens are in staking, which is under founding team control. 

1/16) SUI has a great design, except for its token economics:

SUI claims to have a capped supply of 10B, with 52% being "unallocated" till 2030

The problem is that over 8B SUI is being staked right now!

Over 84% of the staked supply is held by founders! SUI is centralized: 🧵

— Justin Bons (@Justin_Bons) May 2, 2024

Furthermore, Bons added that the founders control most of the supply without any lock-in period and legal guarantees. Sui has so far refused to disclose information about the majority of its token supply.

Some crypto traders noted that the Sui token staking reward is enough for stakers, including founders, this is creating a very big sell pressure on the Sui token market, as they’re selling $5 million worth of Sui tokens every week.

Damn I wonder why $SUI is underperforming so much

Oh that's right $5M every week in stake rewards for locked tokens that are up 1000x will do that pic.twitter.com/5AIAtOIsxW

— Wazz (@WazzCrypto) May 3, 2024

The current trade price of Sui token is $1.09 & this price is 35% down over the last 30 days. 

$Sui token struggling badly despite bull sentiments pic.twitter.com/WChSVwMY91

— Bitcoinik (@Bitcoinikdotcom) May 4, 2024

In May, $1,000,000,000 worth of 800 million sui tokens will be unlocked by the Suit crypto team. With this big amount of token unlock, they will increase the circulation supply by 8% which is itself a very big figure for any crypto token in this innovative sector.

Some crypto X (Twitter) users alleged that the Sui token is an example of VC’s abuse of money power because they’re going to gain 50% profit because they are going to dump tokens against retail investors.

#SUI is example of manipulative VC tokenomic. Sell really small amount to VCs, pump coin with marketing. Unlock tokens and dump on retail with 50%+ profit. Rinse and repeat. pic.twitter.com/k6p0Am8aaR

— Crypto Maniac (@Fanstebg92) May 3, 2024

Read also: US economic advisor says “govt can’t go bankrupt bcz they can print own money”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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