The Sui Network, a smart contract layer 1 blockchain, has launched its mainnet and its native token has been listed on top centralized exchanges such as Binance, OKX, and KuCoin. With a fully diluted valuation of nearly $14 billion, Sui has outperformed competitors like Solana. As the New York market opened on Thursday, Sui was trading around $1.39, down more than 35 percent in the past 24 hours.
Related: Sui Token: A Game Changer Or Just Vaporware? Analyst Issues Warning – Coinpedia Fintech News
Sui Coin Poised for Volatility in the Coming Days
With a trading volume of about $1.6 billion, the SUI coin is poised for more volatility in the coming days fueled by market makers, who have taken the lion’s share. For every crypto investor, understanding a project’s tokenomics is crucial to assess the risk-to-reward ratio. As for the Sui network, it has significantly invested in market makers to provide seamless liquidity. Reportedly, more than 54 percent of the Sui token’s circulating supply was issued to crypto market makers.
High Percentage of Market Makers Puts Sui Tokens at Risk
The high percentage of Sui tokens with market makers puts them at risk of increased sell pressure. Moreover, putting 400 million SUI tokens in the hands of market makers who are likely to dump them in the name of a hedge is a huge risk for retail investors.
Binance LaunchPool and Sui Foundation
Notably, Binance LaunchPool and Sui Foundation both received a total of 2.6 percent and 5.5 percent of the SUI total supply, respectively. Previously, Binance offered an opportunity on its LaunchPool product for people to earn SUI by staking BNB or TUSD. This led to a misunderstanding between Justin Sun and CZ, after the former deposited huge amounts to farm SUI.
