SUI joins Binance in a 70% drop and drops another cryptocurrency

Cryptocurrency Sui (SUI) launched its blockchain on Wednesday (3), but the launch of the coin on Binance also came with a 70% drop. The coin was listed with the price of $4.51 and dropped to $1.29 within minutes.

It has been awaited for the past few days, but the cryptocurrency has already gained space with major brokers around the world.

SUI drops in market after major exchanges announce their listing, outperforming Binance in volume
SUI drops in the market after major exchanges announced their listing, Binance leading by volume. Credit: CoinMarketCap.
SUI chart after listing on brokers shows big drop in price
SUI Chart After Brokers List Shows Massive Price Drop/CoinMarketCap.

On the highly anticipated opening day, the Sui cryptocurrency is closing in on the top 100 by total market cap

The launch of SUI piqued investor interest due to the fact that its market cap is already at position 122. That is, even on the launch day, the project received a lot of attention and approached the top 100.

It is worth remembering that Sui (SUI) is a cryptocurrency supported by Binance in the LaunchPool program. The new digital currency became the 33rd to appear on the service, boosting other projects like Polygon (MATIC) in the past.

Thus, many Binance customers have earned the cryptocurrency by holding BNB or TUSD in their accounts. As a result, the drop of the coin on the exchange may have been caused by the eviction of holders who staked the coin on Binance.

The start of SUI on Binance even sparked controversy between billionaires Changpeng Zhao (CZ) and Justin Sun, after the latter made a millionaire deposit of TUSD to participate in the airdrop. However, CZ warned Sun and said he could take action against him.

Anyway, the coin arrived with a philosophy similar to that of Aptos, created by former employees of Meta.

Another cryptocurrency crashed with SUI devaluation

Another downside of the rapid devaluation of Sui (SUI) is the fact that even investors in Sui cryptocurrency (IOU) are posting losses.

The eponymous project, which had appreciated in value in recent days, fell this Wednesday, losing 30% of its value.

For example, the CoinMarketCap portal is leaving an active warning about this project, stating that it may not be transferable between brokers and that investors should be extra careful.

Cryptocurrency SUI with ticker IOU devalued on Wednesday, May 3, 2023
Cryptocurrency SUI with ticker IOU devalued on Wednesday, May 3, 2023/CMC.

What is the risk of investing in Sui cryptocurrency?

Investing in a new cryptocurrency can be risky as they do not have an established track record and are therefore less predictable than older, established cryptocurrencies such as Bitcoin and Ethereum.

Some new cryptocurrencies may have security vulnerabilities, technical issues, or acceptance issues. This can lead to extreme price volatility and potential investment losses.

Moreover, it is often difficult to gauge the quality of the team behind the cryptocurrency and its ability to execute on the business plans.

However, investing in new cryptocurrencies can also bring great rewards to those who can identify promising projects that have the potential to grow and become successful.

As with any investment, it is important to do in-depth research and fully understand the risks before deciding to invest in a new cryptocurrency.

Source: Live Coins