Justin Bons, the Founder of the crypto research platform Cyber Capital, criticized SUI’s centralized control, highlighting that almost 84% of the staked supply is under the control of its founders. Bons targeted SUI, asserting, “SUI has a great design, except for its token economics.”
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
Reportedly, SUI boasts a capped supply of 10 billion, with 52% unallocated until 2030. While more than 8 billion SUI tokens are staked at present, over 84% of the supply is held by the founders. Highlighting this crucial point, Bons pointed out, “SUI is centralized.” Further, he added,
“The founders control the MAJORITY of supply without lock-ins & ZERO legal guarantees! The legal fine print protects them, as the truth is sobering…The staked SUI implies there is no lock-in at all!”
Moreover, Bons posited that the SUI chart representing its supply over the next seven years is a “lie.” He added that all legal documents surrounding the fact prove their chart wrong. The analyst chastised the platform for being “extremely deceptive,” alleging a “clear lack of disclosure coupled with lies & unbridled greed.”
Bons also unveiled “someone’s” legal ownership over the unallocated supply. While the researcher demanded SUI to disclose their address, the platform reportedly refused to accept the demand. Instead, they stated that SUI was with custodians like BitGo, Anchorage, and Coinbase Prime. He wrote,
“The sheer greed of SUI’s distribution is mindblowing. As SUI still refuses to give full disclosure on the MAJORITY of SUI supply… This presents us with extreme risk, as the SUI leadership effectively controls network consensus.”
Meanwhile, the SUI token is experiencing a downward trend, aligning with the prevailing trend of the crypto market despite fluctuations. Currently trading at $1.10, SUI has shown a marginal decline of 1.92%. However, the token has exhibited substantial falls over the past week and month, marking dips of 6% and 35%, respectively.
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