It is not mandatory to make airdrops for every project, and honestly, I was honored to be eligible to a token sale at $0.03 for SUI instead of $0.1 for the general public. However, when I discovered the SUI IOU price on Hotbit currently above $2, I thought this market is crazy, since it makes no sense compared to the sale price announced by the Sui team. Furthermore, selling the coin of a "decentralized" Layer 1 blockchain only through centralized exchanges like Bybit, OKX and Kucoin made no sense for me... Especially when you need to get KYC verified to do that. It is not exactly the definition of decentralization that I had in mind. So with these mixed feelings, I could only stay away, and maybe just buy it when it has dumped or on the contrary short it if it has pumped, but first of all, let's have a look at the fundamentals of the project.
According to the Sui website:
Sui is an innovative, decentralized Layer 1 blockchain that redefines asset ownership.
Therefore, it seems to be an alternative to Aptos (APT), which was an alternative to Solana (SOL), which used to be an alternative to Ethereum (ETH)...
While the project seems promising, I can't help but feel skeptical about the current market hype around the SUI price. It was hard to imagine how a coin that was sold at $0.03 during the private sale can skyrocket to $2 without any real-world use cases or adoption. But as the market is sometimes crazy, the initial price was $2.16, and then it quickly plummeted to $1.35, which is already a 38% decrease compared to the initial price... Is it worth it now that it has dumped? Not yet, because at this price it still makes a fully diluted valuation (FDV) of $13.5 billion... For a DeFi ecosystem that does not exist yet on Sui mainnet. To compare, the FDV of Aptos (APT) is $10 billion, which is already too much compared to their total locked value (TVL) in their DeFi ecosystem, which is only $50 million... With a FDV/TVL ratio of 200, APT is clearly overrated vs. Solana (SOL) which has a ratio of about 40... Regarding Ethereum (ETH), its ratio is less than 10. So what does it mean? It concretely means that with the same ratio as ETH (which is the reference of the market), APT price would be less than $0.5 instead of $10 today. It also means that with the same TVL as Aptos (which is already a challenging goal), SUI price should be $0.05... Instead of $1.35 now. Therefore, buying SUI now is more than risky. Buying it later will make sense if they have developed in the meantime their DeFi ecosystem and demonstrated a FDV/TVL ratio at least close to Solana...
As far as I know, the Sui team has indeed not yet released any working products on their mainnet, and their roadmap seems quite ambitious. It's essential to note that many promising blockchain projects have failed to deliver on their promises, and investors have lost significant amounts of money.
In conclusion, while Sui Network seems to have a solid team, technology, and vision, the current market hype around their token price seems unsustainable. It's crucial to approach such projects with a critical eye and do your research before investing. Personally, I'll be staying away from SUI for now and keeping an eye on how the project develops in the future.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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