Why Is SUI Token Gaining Traction in the Crypto World?

SUI token gains attention as Sui Network’s mainnet launch approaches.
SUI token’s role in DeFi activities and its introduction on Binance Launchpool.
Conflict between Binance CEO Changpeng Zhao and Tron founder Justin Sun involving the SUI token.

The Sui Network, a Layer 1 blockchain, has been making waves in the crypto community as it nears its mainnet launch on May 3. The network’s native token, SUI, will be listed on several crypto exchanges, including OKX, Kucoin, and Bybit, once the mainnet goes live.

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The anticipated launch of the SUI token is not the sole reason for its recent buzz. The token was at the center of a conflict between Binance CEO Changpeng Zhao and Tron founder Justin Sun, seemingly resolved through a series of tweets. So, what exactly is the SUI token, and why has it captured the crypto world’s attention?

The SUI token is the native token for the Sui Layer 1 blockchain network. The network emphasizes high-speed transactions, instant transaction finality, and reduced latency in deploying smart contracts. The network has gained recognition for its approach to the Decentralized Finance (DeFi) industry, including supporting developers by simplifying the smart contract development process with Move, a programming language based on Rust.

The SUI token is expected to play a vital role in the blockchain ecosystem. This includes participating in PoS consensus, staking, and on-chain voting for protocol upgrades. While the token’s primary utility will be to pay for gas fees, it will also have more advanced use cases, such as enabling governance, paying for transaction processing, and participating in DeFi activities.

Binance recently announced that SUI tokens would be available through its Launchpool. This platform allows users to deposit their crypto assets into a liquidity pool and earn rewards. The introduction of the SUI token on Binance Launchpool generated significant interest within the crypto community.

Following the announcement, Tron founder Justin Sun deposited a large amount of TrueUSD (TUSD) stablecoins into Binance. This deposit is necessary for farming SUI tokens. The transfer was detected by Whale Alert, a platform that tracks sizable asset transfers across blockchain addresses.

After the transfer gained community attention, Changpeng Zhao (CZ) tweeted that the Launchpool was intended for retail users, not just whales. CZ suspected a potential SUI token grab and warned that Binance would take action against Justin Sun if he used any of the deposited TUSD to obtain Launchpool SUI tokens. Justin Sun responded by clarifying that the deposit was for facilitating market-making between leading TUSD exchanges and not participating in any exchange promotion.

The following day, Justin Sun tweeted that he had arranged a full refund of the $56 million transfer to Binance. Later, the crypto exchange tweeted that it would reallocate the market maker’s 278,752 farmed SUI tokens to its platform’s TUSD liquidity pool.