Sui has finally launched its token, sparking intense debate across the crypto community—especially among Chinese users. Once hailed as a promising Layer 1 blockchain with strong developer momentum and high expectations for an airdrop, Sui’s decision to skip token distribution in favor of a tightly controlled Initial Exchange Offering (IEO) has left many early supporters feeling misled and frustrated.
But beneath the controversy lies a deeper question: Is Sui still a viable investment despite the backlash? Let’s dive into the facts, analyze the ecosystem, assess the tokenomics, and explore whether this Move-based blockchain can overcome its rocky start.
Understanding Sui: A High-Performance Blockchain for Developers
Sui is a permissionless, proof-of-stake (PoS) blockchain developed by Mysten Labs—founded by former Meta (Facebook) engineers who previously worked on the Libra/Diem project. The team leveraged their experience to design a next-generation infrastructure focused on high throughput, low latency, and instant finality, making it ideal for applications like gaming, DeFi, and social platforms.
Unlike traditional blockchains that process transactions sequentially, Sui uses an object-centric data model and parallel execution engine powered by the Move programming language, enabling it to scale horizontally and handle thousands of transactions per second.
Adeniyi Abiodun, CPO of Mysten Labs, has emphasized Sui’s vision: building a tightly connected developer community, supporting innovative monetization models, and fostering large-scale user adoption. The team has also confirmed partnerships with leading 3A game studios, hinting at a strong push toward GameFi in the near future.
With $336 million raised across multiple funding rounds from top-tier investors like a16z, Coinbase Ventures, and Lightspeed, Sui enters the market with solid backing and ambitious goals.
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The Airdrop Controversy: Broken Expectations in the Chinese Community
For months, users—particularly in the Chinese-speaking crypto space—engaged heavily with Sui’s testnet, participated in campaigns like Capy Holidays, completed quests, minted NFTs, and even staked test tokens. These actions were widely interpreted as steps toward qualifying for a potential airdrop, a common practice in new blockchain launches.
Yet on April 10, Adeniyi Abiodun made it clear:
“Stop spreading rumors. There is no SUI airdrop, no plans for one, and never will be.”
This announcement came only days before the IEO was revealed—too late for many who had already invested significant time and gas fees. While Sui had technically stated "no official airdrop plans" several times since late 2022, the wording was vague: phrases like “currently no”, “not at this time”, or “no formal plan” left room for hope.
In contrast, Western KOLs showed little reaction to the news. Most English-language discussions focused on technical analysis or valuation comparisons with Aptos—the other Move-based chain. But in Chinese communities, outrage exploded.
Users felt misled—not necessarily because there was a promise broken, but because the project encouraged engagement without clarifying the lack of rewards. This perceived exploitation of community effort fueled accusations of unfair treatment.
Why Did Users Feel Betrayed?
- Time and cost investment: Many spent months interacting with Sui apps.
- Opportunity cost: That same effort could have yielded ARB or other valuable airdrops.
- Perceived hypocrisy: Sui clearly values Chinese users (evident from events in Hong Kong and IEO listings), yet ignored their expectations.
As one KOL put it:
“It’s not about being entitled—it’s about reciprocity. We supported you during testing; where’s our reward?”
Sui IEO: Structure, Valuation, and Distribution Issues
Instead of an airdrop, Sui opted for a Recognition Sale—a whitelist-based IEO available through three exchanges: OKX, KuCoin, and Bybit.
IEO Allocation Summary
- OKX: 42.3 million SUI
- KuCoin: 42.3 million SUI
- Bybit: 94 million SUI
- Total IEO Supply: ~178.6 million SUI (1.78% of total 10B supply)
Pricing was set at $0.10 per SUI, with discounts for early supporters who completed KYC before February 1, 2023.
Compared to Aptos (APT), which raised at a $2 billion valuation and currently trades around $10 with ~17% circulating supply, SUI's post-IEO price hovered near $1.06—a 10x jump from IEO price. However, initial circulating supply is limited to about 500 million SUI (5%), suggesting potential volatility as more tokens unlock monthly.
Major Community Complaints About the IEO
Despite the profit opportunity, execution flaws damaged trust:
- Email mix-ups: Users who signed up for OKX/KuCoin received Bybit confirmation emails.
- KYC barriers: Bybit’s strict verification process made it nearly impossible for many Chinese users to participate.
- Website failures: Google Forms used for data collection crashed repeatedly.
- Random selection: Only 96,000 of over 340,000 eligible users received whitelists—feeling more like a lottery than recognition.
This chaotic rollout reinforced perceptions that Sui prioritized convenience over fairness—especially toward its largest user base.
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Market Sentiment & Expert Opinions: What Do KOLs Say?
We surveyed insights from key Chinese crypto influencers:
| KOL | View on IEO | Investment Intent | Long-Term Outlook |
|---|---|---|---|
| @Woody (Venture Partner) | Criticized lack of transparency | Small participation | Bullish on future ecosystem growth |
| @Lsp.eth | Called it a “donation campaign” | Skipped IEO; watching secondary market | Prefers active teams; hopes Sui becomes “next Solana” |
| @Raccoon Chan | Frustrated by unmet expectations | Minor speculative play | Neutral – waiting for mainnet results |
| @Miaowaziseed | Acknowledges poor communication | Won’t invest directly | Believes DeFi incentives may revive interest |
A common theme emerged: "We’re angry—but we’ll still buy."
Even critics admit Sui’s tech potential is real. The sentiment isn’t rejection—it’s disappointment mixed with cautious optimism.
Ecosystem Status: Is Sui Delivering on Its Vision?
Sui launched with over 200 projects in development, spanning DeFi, NFTs, gaming, and infrastructure tools. Notable names include:
- Scallop – Native lending protocol
- Turbos Finance – Automated market maker
- Aftermath Games – GameFi platform
- Sui Name Service (SNS) – Identity layer
However, most remain early-stage. Compared to Solana or Ethereum at similar points in their lifecycle, Sui lacks breakout applications or viral use cases.
That said, active development continues. The team is pushing hard on developer tooling, grants programs, and global hackathons to attract talent.
Compared to Aptos—which has seen slower ecosystem growth despite earlier launch—Sui appears more proactive.
Still, if Sui wants to fulfill its mission of becoming a premier developer platform, it needs killer apps fast.
FAQ: Your Top Questions Answered
Q: Did Sui completely rule out any future airdrops?
A: Yes. Co-founder Adeniyi Abiodun explicitly stated there will be “no airdrop now or ever.” Any future rewards would likely come via ecosystem incentives, not retroactive distributions.
Q: Why wasn’t Binance included in the IEO?
A: While unconfirmed, excluding Binance may reflect regulatory caution or strategic alignment with exchanges stronger in Asia. It also signals a focus on OKX/KuCoin/Bybit’s user bases—predominantly Chinese-speaking markets.
Q: How does FTX’s involvement affect Sui?
A: FTX invested $102M in Mysten Labs’ B round and held warrants for ~890M SUI. After FTX collapsed, Mysten repurchased part of the stake for $96.3M (~$0.185 avg). Remaining tokens are likely under court supervision. This reduces immediate sell pressure but doesn’t eliminate long-term risks.
Q: Is Sui’s token valuation reasonable?
A: At $2B fully diluted valuation (matching Aptos), it’s aggressive given current ecosystem size. But if GameFi adoption accelerates or major partners launch, growth could justify the price.
Q: Can Sui recover trust in the Chinese community?
A: Yes—but only through consistent action: transparent communication, fair incentive programs, and launching high-impact dApps. A well-executed ecosystem fund or retroactive rewards could help heal wounds.
Q: Should I buy SUI now?
A: For long-term believers in Move-based chains and scalable infrastructure, SUI offers upside if adoption grows. Short-term traders should watch unlock schedules and TVL trends closely.
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Final Verdict: Hype vs. Reality
Sui stands at a crossroads. Technologically advanced and well-funded, it has all the ingredients for success—but its relationship with early adopters is strained.
Its core keywords—Sui blockchain, SUI token, Move language, GameFi, Layer 1, IEO, DeFi ecosystem, and high-performance blockchain—reflect both promise and pressure.
While the “no airdrop” policy may have saved legal complications, it cost goodwill—especially in the very community that helped build momentum.
Going forward, Sui must shift from hype-driven marketing to user-centric value creation. Launching compelling applications, improving developer experience, and rewarding engagement meaningfully will determine whether it becomes another Solana—or fades into obscurity.
For investors:
✅ Strong fundamentals
⚠️ High competition (vs. Aptos, Solana)
⚠️ Community sentiment recovery needed
📈 Potential upside if ecosystem delivers
The market has spoken: people are still buying. Now it’s time for Sui to prove they made the right call.
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