SUI is the native coin of the Sui blockchain, which focuses on the Move programming language, promoting super high TPS and ultra-low latency, with transactions basically arriving in seconds. The team's background sounds impressive, with core members coming from Facebook's failed Diem (formerly Libra) project, truly a 'star team.' When the project was launched, it claimed it would be an 'Ethereum killer,' raising over 300 million dollars in funding, with a valuation once soaring to 4 billion USD. Before going live, it relied on a bunch of top-tier VCs for staging, community airdrop expectations were sky-high, and marketing was relentless, directly igniting retail sentiment; I couldn't help but jump in a bit at that time.

But what happened? Looking back now, this project has been nothing but a big pit from start to finish.

The biggest issue lies in the token economics and liquidity design. The early token distribution was extremely concentrated, with VCs and the team holding the majority, and the unlock timetable was deliberately made vague, making it impossible for retail investors to predict when there would be selling pressure. The ecosystem really hasn't launched anything; DEX, lending, GameFi are all still in the PPT stage, but marketing has been overwhelming, elevating expectations to the sky. A typical tactic: first, tell a compelling story, drive the price up, make retail investors feel that 'getting in means profit,' and when everyone rushes in, as soon as the unlock happens, the dump comes.

The worst day was on October 10, 2025, when suddenly 44 million SUI were unlocked, and at that time the coin price was still around 3.8 USD, making the unlocked portion worth about 144 million USD. It coincided with a weakening market sentiment, and large holders and algorithmic trading began to sell mercilessly, causing the price to plummet from 3.8 USD to 0.5 USD, a drop of over 87%! Although there was a slight rebound later, it has only recovered a bit since then, and compared to the peak, it has been cut down by more than half.

To make matters worse, the SUI ecosystem had previously experienced a major incident. Cetus, a leading DEX, was directly hacked for 260 million USD, exposing security vulnerabilities completely, causing market confidence to collapse instantly.

In short, the core logic of SUI's operation this round is: using the 'star team + super high-performance Layer 1' compelling story to preemptively deplete value over the next decade. By relying on information asymmetry, it gets retail investors excited at the highs, and then when the big unlock comes, liquidity crashes, perfectly executing a wave of harvesting. VCs and the team acquire tokens at low prices and sell at high prices, leaving retail investors to pick up the tab.