Official Response from Altcoin Project Listed on Binance (BNB) Amidst Heavy Criticism

• A listed altcoin project on Binance, Sui, is facing criticism for the majority of its supply being held by the founders.
• Justin Bons, founder of Cyber Capital, recently voiced concerns about Sui’s token supply, criticizing the fact that more than 84% of the staked supply is controlled by the founding team.
• In response to these concerns, Sui clarified that the founders of MystenLabs do not control the Sui Foundation treasury, community reserves, staking allowances, or tokens allocated to investors.

Amidst concerns about the distribution of Sui’s token supply, the project clarifies its stance, ensuring that the founders do not control the majority of the supply. This article dives into the details of the controversy and Sui’s response.

Concerns Raised Over Sui’s Token Supply

Recently, Justin Bons, the founder of Cyber Capital, raised concerns about the distribution of Sui’s token supply. He criticized the fact that more than 8 billion SUI tokens have been staked, with over 84% of this staked supply being controlled by the founding team. Bons also pointed out that the founders control the majority of the supply without any lock-up period or legal guarantees.

Sui Responds to Community Concerns

In response to the concerns raised by the community, Sui issued an official statement. The project clarified that the founders of MystenLabs do not control the Sui Foundation treasury, community reserves, staking allowances, or tokens allocated to investors. According to the statement, the Sui Foundation is the largest holder of locked tokens.

Official Statement from Sui

The official statement from Sui emphasized the following points: “Recently, there have been misleading publications about Sui’s token supply. Let’s clarify the situation starting with the basic information: locked tokens are locked by third-party custodians. They cannot be moved and are securely stored until their locks are opened according to Sui’s token emission program. Also, 100% of the staking rewards earned by the Sui Foundation are returned to the community and included in the public emission program.”

Conclusion

The controversy surrounding Sui’s token supply distribution has brought to light the importance of transparency in token supply management. While concerns were raised about the majority of the supply being controlled by the founders, Sui’s response clarifies their stance and ensures the community that the founders do not control the majority of the supply. This incident serves as a reminder for investors to thoroughly research projects before investing.