#Progress in Tokenomics and Token Launch
This review will cover some concerns about the $SUI listing and tokenomics from a MM(market-making) perspective.
First of all, SUI token economy seems predatory for retail investors. The problem is MM deals with their lack of public disclosures. “No one really knows what the terms of the deal are”.
In general, MMs tend to use a call option deal arrangement, which allows them to either redeem their tokens or receive the equivalent value in USD at a strike price. If the tokens are trading above that strike price, the MMs have an incentive to sell.
Available tokens at launch - 528 mln(10b total supply). MMs hold the majority of the circulating supply. Its obvious that potential sell pressure is huge. Given that teams hire MMs to narrow the gap between the buying and selling prices and keep the market liquid, it is unlikely that they will dump massively.
Nevertheless, this case doesn`t add any confidence for retail. There are a lot of "ifs" and uncertainties. While there is potential upside for $SUI in terms of upcoming DeFi Protocols generating demand beyond the slow sell off from MMs, its not the best long-term investment decision as there is a lack of public disclosures. Show Less
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