The cryptocurrency sector’s rapid entry into the market and one of the most popular projects of recent times, SUI, is making headlines with an interesting incident. The Sui Foundation and Mysten Labs, behind SUI, have taken action against MovEx, one of the project’s investors, and have taken a tough step due to contract violations.
New Step from Sui Foundation
The Sui Foundation officially terminated its relationship with decentralized cryptocurrency exchange MovEx, citing contract violations. The Sui team sent 2.5 million SUI to the MovEx exchange, stating that it was for the exchange’s own order book, DeepBook. Of course, the sent SUI tokens had a lock-up period according to the contract. Despite this, MovEx carried out three transactions and moved some of the tokens, violating the contract.
The Sui team then made a statement announcing the termination of the contract. The SUI team stated that they terminated the contract with MovEx due to these events and added that no additional SUI tokens would be given to MovEx or institutions associated with MovEx. It was also stated that MovEx would no longer be the main contributor to the order book named DeepBook.
It was stated that MovEx’s tokens are currently transferred to a custodial wallet and will be distributed according to a predetermined schedule. In addition, Sui Foundation stated that all other tokens have their own distribution schedule based on different companies.
Sui Foundation also responded to claims that unlocked tokens are freely sold on the open market. MovEx has not yet made a statement about the matter.
Positive Step for SUI Investors
This step taken by Sui Foundation is actually quite significant and positive for SUI investors. This prevented MovEx from creating significant selling pressure and confiscating their tokens. Although these tokens will still be released to the market according to a specific schedule, MovEx’s illegal actions have been prevented. As much as selling pressure is bad for a cryptocurrency project, the social media impact related to it is also considered negative. Therefore, Sui Foundation has achieved two goals with one stone.
