SUI Faced Massive Volatility Minutes After Mainnet Launch

The highly anticipated SUI mainnet went live on May 3rd.  In an announcement, the Sui Foundation – the organization behind the development of the network – revealed that the builders and users will be able to access the Layer 1 blockchain, which enables devs to build freely without being restricted by complex infrastructure.

SUI Launch

For the uninitiated, the Sui blockchain is essentially a smart contract platform designed to foster the growth of Web3 with enhanced speed and scalability. The network relies on delegated Proof-of-Stake (dPoS) that lets users elect and vote delegates in order to confirm the next block.

Commenting on the development, Greg Siourounis, Managing Director of the Sui Foundation, said,

“Today is a monumental milestone for the entire Sui community and the digital asset ecosystem as a whole. For the first time, builders and users have access to a Layer 1 blockchain that allows developers to build freely, without being inhibited by complex infrastructure, and unlocks endless possibilities for users across the world.”

The Hype

The SUI hype has even managed to capture the South Korean crypto ecosystem, which is otherwise known to tread cautiously when it comes to new projects. One of the largest exchanges in the country – UpBit – has announced plans to start trading SUI starting May 3rd.

So far, several prominent crypto trading platforms have extended support for the Sui mainnet launch, such as Binance, OKX, Kucoin, Huobi, Poloniex, and Bybit, thereby allowing investors to buy and sell SUI. As it typically happens in the early hours after the launch of a new token, it faced enhanced volatility. SUI went to about $3.5 before crashing to under $1.5 in minutes.

Previously, Tron Founder Justin Sun’s actions of transferring over 56 million TUSD (worth more than $56.4 million) to crypto exchange Binance in the wee hours of May 1st ignited rumors about his intention to farm the just-released Sui tokens on the Binance LaunchPool.

Subsequently, the move prompted a warning from Binance CEO CZ asking Sun to refrain from using any part of the TUSD deposit to rake in the SUI rewards on the platform.