SUI, One Of The Long-Awaited Blockchain Token Projects In The Crypto Community, Is Finally Here Launch earlier todayContrary to expectations, however, SUI has recorded a significant price plunge as it opened for trading on multiple exchanges.
In the last 4 hours since launch, the token has fallen over 30%. This price action disappointed traders who expected the token to only record a continuous uptrend after its launch, as often happens during these events.
Trading on the exchange started
The token is now publicly available on major exchanges in the crypto market such as Binance, KuCoin and ByBit. Tokens can now be bought and sold against other cryptocurrencies and fiat currencies such as Bitcoin, USDT, TUSD, EUR, BNB and TRY.
According to Binance blog post For the listing of SUI, traders will not pay maker fees for SUI/USDT until further announcement.
Chinese cryptocurrency journalist Colin Wu report The official team behind SUI Coin has requested that exchanges should not initiate SUI-based perpetual futures contracts. launched a pair.
SUI plummets by more than 30%
Interestingly, after an initial surge of over 1,000% at launch, the token dropped by more than 30% after opening on various cryptocurrency exchanges. The nascent asset is currently trading at $1.53 at 35% depreciation.
According to CoinMarketCap data, SUI currently has a low of $24 at $1.33 and a high of $24 at $3.34. According to CoinMarketCap, despite the market decline, the asset’s trading volume is still rising and is worth nearly $1 million.
SUI is blockchain project It 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 cost, centralization, and vulnerability to cyber threats.
The blockchain is based on a Proof of Stake (PoS) consensus mechanism, allowing users to stake their tokens to participate in the network’s validation process and get rewarded for their contributions.
However, several factors may have contributed to SUI’s plummeting post-launch on exchanges. However, supply and demand dynamics and trader and investor disappointment could be a few reasons.
When a new cryptocurrency launches on an exchange, there can be a flood of sell orders as early investors and traders try to make a profit. In the case of SUI, people who bought it cheaply at presales or public auctions may have sold it to make a profit.
And if the buying pressure is not strong enough to absorb these sell orders, the price will fall. Additionally, some traders and investors may have speculated on the token’s price prior to its launch on exchanges.
This may have inflated and expanded expectations. If the SUI price fails to meet these expectations, some investors may have sold their holdings, contributing to downward pressure on the price.
Featured Image on Unsplash, Chart on TradingView