With the rise of decentralized finance (DeFi), blockchain projects have been working tirelessly to develop unique solutions to the challenges faced by the sector, including scalability, security, and gas fees. One project that has been gaining traction in the crypto community is Sui Network, a Layer 1 blockchain designed to deliver high-speed transactions, instant transaction finality, and reduce latency in smart contract deployment. The imminent launch of Sui Network's native token, SUI, on multiple crypto exchanges has sparked considerable interest among crypto investors. In this article, we will delve deeper into the SUI token and explore why it has been attracting attention in the crypto world.
The SUI token is the native cryptocurrency of the Sui Layer 1 blockchain network, which aims to tackle some of the most pressing challenges facing the crypto industry. SUI is designed to deliver high-speed transactions, instant transaction finality, and reduce latency in smart contract deployment. The Sui Network is known for its innovative approach to DeFi, which includes facilitating smart contract development with Move, a programming language based on Rust.
The SUI token will play a crucial role in the Sui Network ecosystem, including participating in Proof-of-Stake (PoS) consensus, staking, and on-chain voting for protocol upgrades. SUI's primary utility will be to pay for gas fees, but it will also have more advanced use cases, such as enabling governance, paying for transaction processing, and participating in DeFi activities.
Each crypto exchange conducting the SUI token sale will offer 225 million tokens, with a maximum allocation of 10,000 tokens per user. Tokens will be sold for $0.1 each, and US residents will not be eligible to participate in the sale. The token distribution at launch will be as follows: 50% of the tokens will be allocated to the community reserve for grants, validator subsidies, and research and development purposes. 20% of the tokens will be granted to the early contributors to the project. Investors will receive 14% of the tokens, while 10% will be assigned to the Mysten Labs treasury, the creator of Sui Network. Additionally, 6% of the tokens will be directed toward the Community Access Program (CAP) and app testers.
SUI tokens have been attracting considerable attention in the crypto community due to recent developments involving Binance CEO Changpeng Zhao and Tron founder Justin Sun. Binance recently announced that it would make SUI tokens available through its Launchpool, allowing users to deposit their crypto assets into a liquidity pool and earn rewards. The introduction of the SUI token on Binance Launchpool generated significant interest in SUI within the crypto community.
Following the announcement, Justin Sun made a large deposit of TrueUSD (TUSD) stablecoins into Binance, which are required to farm SUI tokens. The transfer was detected by Whale Alert, a platform that tracks large asset transfers across blockchain addresses.
After the transfer caught the attention of the community, Changpeng Zhao (CZ) tweeted that the Launchpool was intended for retail users and not just whales. CZ suspected a potential SUI token grab and warned that the company would take action against Justin Sun if he used any of the deposited TUSD to obtain Launchpool SUI tokens. Justin Sun responded by explaining that the deposit was to facilitate market-making between leading TUSD exchanges and not to participate in any exchange.