The price of Sui (SUI) hit an all-time low this week amid rumors of market manipulation.
SUI is currently trading around the $0.378 level, with many pundits speculating that its value could reach zero.
While the future of SUI looks bleak, some crypto traders have turned their attention to emerging penny cryptocurrencies with better prospects – prompting a boost in the popularity of GameFi token Meme Kombat (MK).
SUI Sinks as Manipulation Allegations Erode Investor Trust
SUI has plunged over 12% since October 16 amid allegations from South Korean regulators that the Sui Foundation has been manipulating the supply for its own gain.
As reported by Cointelegraph, the South Korean Financial Supervisory Service plans to investigate the SUI distribution following claims made by lawmaker Min Beyong-deok.
Min alleged that the Sui Foundation paid itself interest by staking coins that should have been locked up, then sold them to increase circulation.
The Sui Foundation firmly denied these manipulation claims in a recent Twitter post, stating they were “unfounded” and “materially false”.
Sui Foundation’s post then went on to say that the circulating supply data they publish is entirely accurate.
However, the damage has already been done to SUI’s price, which hit new all-time lows this week amid the allegations.
This drop pushed SUI’s market cap to just $326 million – far lower than its peak of $741 million in May.
No Signs of Recovery in Sight for Beaten-Down Sui Token
There now seems to be no way back for Sui, with investors choosing to offload their tokens rather than wait for the situation to resolve itself.
The allegations have eroded investor confidence, reflected in SUI’s sharp price drop.
However, SUI had been struggling before this, with the token’s price trapped in a descending channel since late June.
Since June’s high, SUI’s value has sunk 57%, trading comfortably below the 50-day Exponential Moving Average (EMA) on the daily time frame.
General bearish market trends and reports that Sui faced several stumbling blocks on the decentralization front have hampered the project’s progress in 2023.
As such, CoinGecko sentiment analysis shows that most of the community is “bearish” on SUI’s prospects.
Which New Penny Cryptos Could Be Set to Explode?
While SUI struggles with controversy, several new penny cryptocurrencies have been gaining traction.
One contender that investors have been paying close attention to is Meme Kombat, which has been turning heads over the past month during its presale phase.
Traders Betting on Hot New Meme Coin Meme Kombat as Presale Nears $600k Mark
Meme Kombat (MK) is an exciting Play-to-Earn (P2E) project that enables users to gamble on AI-generated meme battles using the MK token.
With numerous game modes like Player vs. Player, Player vs. Game, and side-action betting, Meme Kombat offers an immersive and competitive gaming experience.
The project has already raised over $590,000 in its ongoing presale, which enables early backers to purchase MK tokens for just $0.1667.
But beyond gambling, MK also boasts a 112% staking APY to incentivize long-term holding and provide another income stream for investors.
With meme coins known for producing remarkable gains based on speculation and hype, MK’s built-in utility through its P2E mechanics and staking options sets it apart from most other projects in the space.
This diversified approach has helped Meme Kombat make its mark on social media, with the project’s Twitter page recently reaching 7,300 followers.
Crypto analysts like Jacob Bury have also taken note, describing it as “the next 10x potential crypto”.
Looking ahead, Meme Kombat’s team plans to continue developing the platform and launching new game modes, characters, and rewards pathways.
While nothing is guaranteed in the penny crypto space, Meme Kombat’s promising features have traders thinking this could be the next meme coin to explode and produce sizable gains.
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