Justin Bons, founder of cryptocurrency research platform Cyber Capital, criticized SUI’s centralized control, pointing out that nearly 84% of the posted supply is under the control of its founders. Bons took aim at the SUI, saying, “The SUI has a great design, except for its token economy.”
16/1) SUI has a great design, except for the token economy:
SUI says it has a limited supply of 10 billion, of which 52% is “unallocated” until 2030
The problem is that over 8 billion SUI are being bet right now!
Over 84% of the staked offering is held by the founders! The SUI is centralized: 🧵
– Justin Bons (@Justin_Bons) May 2, 2024
SUI reportedly boasts a limited supply of 10 billion, with 52% unallocated until 2030. While more than 8 billion SUI tokens are currently staked, over 84% of the supply is held by founders. Highlighting this crucial point, Bons stressed: “The SUI is centralized.” Furthermore, he added,
“The founders control MOST of the supply with no strings attached and ZERO legal guarantees! The legal fine print protects them, as the truth is sobering… The SUI in play means there is no strings attached!”
Furthermore, Bons speculated that the SUI graph representing his offering over the next seven years is a “lie.” He added that all the legal documents surrounding the matter prove that their graph is wrong. The analyst criticized the platform as “extremely deceptive,” alleging a “clear lack of disclosure coupled with lies and unbridled greed.”
Bons also revealed “someone’s” legal ownership of the unassigned supply. Although the researcher asked SUI to reveal his address, the platform allegedly refused to accept the request. Instead, they said SUI was with custodians like BitGo, Anchorage, and Coinbase Prime. He has written,
“The sheer greed of SUI distribution is shocking. Since SUI still refuses to provide complete information on MOST of SUI’s offerings… This presents an extreme risk, as SUI leadership effectively controls network consensus.”
Meanwhile, the SUI token is experiencing a downtrend, aligning with the prevailing trend of the cryptocurrency market despite the fluctuations. Currently trading at $1.10, SUI showed a marginal decline of 1.92%. However, the token has shown notable declines over the past week and month, marking drops of 6% and 35% respectively.
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