SUI Plummets Over 30% As Trading Goes Live On Exchanges, What Went Wrong?
May 03 2023 - 2:00PM
NEWSBTC
SUI, one of the long-awaited blockchain token projects in the
crypto community, finally launched earlier today. However, contrary
to expectations, SUI has recorded a significant plunge in price as
the trading went live on multiple exchanges. Over the past 4
hours since its launch, the token has declined by more than 30%.
This price action disappointed traders who expected the token to
only record a continuous upward trend following its launch, as
often happens during these events. Trading Goes Live On Exchanges
The token is now live on major exchanges in the crypto market, such
as Binance, KuCoin, ByBit, and so on. The token can now be bought
and sold against other cryptocurrencies and fiat currencies,
including Bitcoin, USDT, TUSD, EUR, BNB, and TRY. Related
Reading: New “Ethereum Killer” SUI Launches Today, What You Need To
Know According to a Binance blog post about the SUI listing,
traders will not pay maker fees on SUI/USDT until further
announcements. Chinese crypto journalist Colin Wu reported that the
official team behind the SUI coin has demanded that exchanges
should not launch SUI-based perpetual futures contracts. However,
exchanges, including, Bybit, OKX, and KuCoin, launched several SUI
trading pairs. SUI Plunges Over 30% Interestingly, the token has
declined by over 30% following its trading launch on various crypto
exchanges after its initial surge of over 1,000% at launch. The
newborn asset currently trades for $1.53 at the time of writing
down by 35%. SUI currently has a 24-low of $1.33 and a 24-high of
$3.34, according to data from CoinMarketCap. Regardless of the
market decline, the asset’s trading volume is still up and at a
value of nearly $1 million, according to CoinMarketCap. SUI
is a blockchain project that aims to create a decentralized
platform for secure and efficient data storage and management. It
was launched in 2020 by a team of blockchain experts who sought to
address the limitations of traditional data storage systems, such
as high costs, centralization, and vulnerability to cyber threats.
The blockchain is based on a Proof-of-Stake (PoS) consensus
mechanism, which allows users to stake their tokens to participate
in the network’s validation process and earn rewards for their
contributions. Though several factors could be tied to the
plummet in SUI following its launch on exchanges. However, a few
reasons could be the supply and demand dynamics and traders’ and
investors’ disappointment. Related Reading: SuiPad – MystenLabs
Official Launchpad Partner, secured $1.155 million in funding When
a new crypto launches on an exchange, there may be an influx of
sell orders as early investors and traders try to take profits. In
SUI’s case, those who bought at presale for a low price and public
sale may have sold to take a profit. And if the buying pressure is
not strong enough to absorb these sell orders, the price is bound
to drop. In addition, some traders and investors may have
speculated on the token’s price before its launch on exchanges.
This may have led to inflated and expanded expectations. When the
price of SUI failed to meet those expectations, some may have sold
off their holdings, contributing to the downward pressure on the
price. Featured image from Unsplash, Chart from TradingView
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