The Unraveling of Suiswap: An In-depth Analysis of the Controversial Decentralized Exchange

CryptoMode Sui Network Suiswap

Suiswap, the token swap platform of the much-vaunted Sui Network, is embroiled in controversy as the crypto community unleashes their criticism. Due to its decentralized exchange, the once-promising Sui blockchain is suffering a reputational blow. On June 3, a much-anticipated initial DEX offering (IDO) is scheduled to take place on Suiswap.

Suiswap versus AptosSwap – A Tale of Uncanny Similarities

In a fascinating twist, someone observed striking resemblances between Suiswap and its competitor, AptosSwap. This latter platform is a decentralized exchange (DEX) on the Aptos Network, another widely acclaimed rival of Ethereum. 

Interestingly, even the metadata for the Suiswap site mirrors that of AptosSwap. This situation has fueled allegations of a careless “copy-paste” job by the Sui developers.

Dissecting the Suiswap IDO and Valuation

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The IDO in question involves the sale of 10 million SUI tokens, effectively pricing Suiswap at a fully diluted value (FDV) of $200 million. However, this bold valuation does not shield the Sui Network from its share of criticisms. The platform has faced significant backlash for its perceived domination by venture capital entities, as noted by DeFi Squared.

In an exasperated response to the alleged copy-paste incident, DeFi Squared ridiculed the incongruity of a $200 million flagship DEX lifting content from AptosSwap. In addition, the community seems to harbor doubts about SUI’s $10 billion valuation and whether it serves as a mere smokescreen for enriching venture capitalists.

The IDO pricing is set at 0.02175 SUI, with the allocation cap at a staggering 500 million SSWP tokens. This IDO is scheduled to last until June 5, based on the official documentation. Simultaneously, 61 million SUI tokens, approximated at $59 million, are poised for unlock on June 3, as indicated by Token Unlocks.

Exploring the VC and Insider Influence on Sui Network

The distribution of SUI tokens exposes the deep-seated control of venture capital and insider parties. A staggering 90% of the tokens are reportedly under the sway of the Sui Foundation, early contributors, Mysten Labs Treasury, and VC Series A and B sales.

SUI has faced a harsh reality check as its initial hype subsides. SUI prices have plummeted 55% from their peak following the launch less than a month ago on May 3. The VC-supported Aptos project, unfortunately, mirrors this performance, with its APT tokens sinking 57% from their peak in January.

As the token prices continue to nosedive, retail traders are becoming increasingly cautious about such heavily insider-controlled projects. The crypto community seems to be growing wary and wiser, reshaping its approach to engaging with such projects.

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