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SUI Faced Massive Volatility Minutes After Mainnet Launch

SUI Faced Massive Volatility Minutes After Mainnet Launch

The SUI mainnet, which was highly anticipated, went live on May 3rd. In an announcement by the Sui Foundation, the organization responsible for developing the network, builders and users now have access to the Layer 1 blockchain, which allows developers to build without being restricted by complex infrastructure.

SUI Launch

For those who are not familiar, the Sui blockchain is a smart contract platform designed to promote the growth of Web3, with enhanced speed and scalability. The network relies on delegated Proof-of-Stake (dPoS), which enables users to elect and vote delegates in order to confirm the next block.

Greg Siourounis, Managing Director of the Sui Foundation, commented on this development, stating:

“Today marks a significant 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 enables developers to build without being inhibited by complex infrastructure, unlocking endless possibilities for users worldwide.”

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. UpBit, one of the largest exchanges in the country, has announced plans to trade SUI starting May 3rd.

Several prominent crypto trading platforms have extended support to the Sui mainnet launch, such as Binance, OKX, Kucoin, Huobi, Poloniex, and Bybit, allowing investors to buy and sell SUI. However, as is typical in the early hours after the launch of a new token, there was increased volatility. SUI rose to approximately $3.5 before crashing to under $1.5 in minutes.

Previously, there were rumors that Tron founder Justin Sun intended to farm just-released SUI tokens on the Binance LaunchPool, after he transferred over 56 million TUSD (worth more than $56.4 million) to crypto exchange Binance in the wee hours of May 1st. CZ, the CEO of Binance, warned Sun to refrain from using any part of the TUSD deposit to rake in the SUI rewards on the platform.