SUI has become one of the hottest altcoins in the crypto space right now. In the past year alone, it has recorded a jaw-dropping gain of 389.3%, leaving even Bitcoin and Ethereum behind, which rose by 85.9% and 6.5%, respectively.
The momentum hasn’t slowed down. In just the past 30 days, the SUI price surged by 41.2%, reaching $4.09 at the time of writing. And since the start of 2024, SUI has rallied by more than 427%, making it one of the top-performing assets of the year.
But what’s grabbing just as much attention as the price rally is a shocking detail from a recent court filing involving FTX.
FTX’s Costly SUI Deal: A Billion-Dollar Mistake
Before collapsing, FTX had struck a deal to obtain a massive stake in SUI. The court filing reveals that the bankrupt exchange had secured rights to 888 million SUI tokens for just $1 million, along with an additional $101 million investment that gave it access to up to 1.6 billion SUI tokens.
The shocking part? FTX sold its entire SUI stake back to Mysten Labs, the creators of the token, for only $96 million in March 2023—just two months before SUI launched its mainnet.
Given today’s price of $4.09, that original stash of 888 million tokens would now be worth over $3.55 billion, and the full 1.6 billion stake would be valued at more than $6.46 billion. In hindsight, it was a deal that cost the exchange billions in missed opportunity.
Why Did FTX Sell So Early?
The answer lies in the urgency surrounding its downfall. Following the collapse caused by customer withdrawals and the Alameda Research scandal, FTX was scrambling to raise funds for creditor repayments. The token sale, in their eyes, was a quick fix—albeit one that has aged poorly.
What’s more, many believe the exchange could have benefited significantly had they simply waited for the token launch. Just weeks after the deal, on May 3, 2023, the SUI token officially launched, and its price began to climb steadily, fueled by strong fundamentals.
SUI’s Fundamentals Are Winning Attention
SUI’s explosive growth isn’t just hype. Its underlying tech includes a unique object-based architecture, designed to enhance scalability. Additionally, the protocol has seen a significant rise in daily transactions, DeFi adoption, and institutional interest.
Its growing Total Value Locked (TVL) is another signal that developers and investors are taking the project seriously, which helps explain its strong price action throughout 2024.
Mysten Labs Played It Right
While FTX’s move is seen as a loss, Mysten Labs comes out looking strategic. The decision to repurchase SUI tokens from FTX not only protected the token’s early distribution but also allowed it to strengthen control during a crucial development phase.
This case shows how well-timed buybacks by project creators can significantly impact a token’s long-term success and stability.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
SUI is gaining momentum due to its innovative object-based blockchain architecture, rising developer activity, growing DeFi ecosystem, and increased institutional interest. Its Total Value Locked (TVL) has also surged in recent months, attracting more retail and institutional investors.
FTX secured early access to around 1.6 billion SUI tokens for just $102 million. However, it sold its entire holdings back to Mysten Labs for only $96 million, just weeks before SUI’s mainnet launch. At today’s prices, the same holdings would be worth over $6.4 billion.
While exact details aren’t public, Mysten Labs—the creators of SUI—repurchased a major chunk of tokens from FTX. The rest are distributed across exchanges, validator rewards, and community incentives.
