Sui Token Tanks Over 70% Within Minutes of Mainnet Going Live

The Sui token (SUI) has lost more than 70% of its value since its mainnet went live yesterday, reaching as low as $1.3 from its debut price of $4.5. Despite the double-digit decline in valuation, the token generated considerable profits for those who got in during the public round at $0.10 and the participants of the community round who got the SUI at $0.03. 

Since its listing on several mainstream crypto exchanges including Binance, OKX, and Bybit, Sui network’s fully diluted market capitalization reached a whopping $13.8 billion. The layer 1 blockchain’s mainnet launch generated significant hype in the crypto community with investors lining up to buy the token ahead of its launch. Pre-listing investors have made between 20x to 60x on their SUI investment. 

The massive price drop seen during the token’s debut is a fairly common phenomenon that has been seen during the mainnet launch of several high profile tokens. According to Altcoin Buzz on Youtube, the selling pressure on SUI is negligible, given that the project did not carry out a full fledged airdrop of the token. As of now, 5% of the total 10 billion SUI tokens are in circulation.

As per the tokenomics, 50% of the total supply has been allocated for the community reserve. These tokens would be used for grants, validator subsidies and research and development among other things. 

Notably, 20% of the supply has been set aside for early contributors of the project. Another 14% would be distributed to investors, along with 6% for the SUI community access program and App Testers. Lastly, 10% of the supply is reserved for the Treasury of Mysten Labs, the Web3 firm behind the development of Sui. A considerable selling pressure could be expected in November this year when early contributors would get access to 9.3% of the SUI tokens allocated to them. 

At the time of writing, SUI was trading at $1.38. Despite the price drop since its debut, the token’s actual market capitalization has recovered to $731 million. The daily trading volume remains the most impressive statistic, with over $2.1 billion SUI tokens changing hands over the past 24 hours.