The highly anticipated launch of Sui’s native token has finally arrived—but not without controversy. As one of the most talked-about Layer 1 blockchains in recent memory, Sui has drawn massive attention from developers and crypto enthusiasts alike. However, its decision to skip a public airdrop in favor of a private Initial Exchange Offering (IEO) has ignited strong backlash, particularly within the Chinese-speaking community.
Despite positioning itself as a developer-first blockchain with strong global ambitions, Sui's rollout strategy has raised questions about its commitment to inclusivity and user fairness. From ambiguous messaging around potential airdrops to technical hiccups during the IEO process, many early supporters feel misled and alienated.
In this deep dive, we’ll explore what Sui is, why its token distribution model sparked such intense criticism, how it compares to rivals like Aptos, and whether investing in SUI makes sense at this stage.
What Is Sui? A Next-Gen Blockchain for Developers
Sui is a high-performance, permissionless Proof-of-Stake (PoS) blockchain developed by Mysten Labs, a team largely composed of former Facebook (Meta) engineers who previously worked on the ill-fated Libra project. After Libra’s regulatory challenges derailed its vision, these technologists regrouped with a renewed mission: to build a truly decentralized infrastructure capable of supporting scalable, real-time applications.
From day one, Sui was designed for speed and scalability. It enables instant settlement, offers high throughput, low latency, and cost-efficient transactions—making it especially attractive for use cases like gaming, social media, and decentralized finance (DeFi). The network uses Move, a secure programming language originally created for Libra, which enhances safety and composability for smart contracts.
Sui has raised $336 million in funding from top-tier investors including a16z, Coinbase Ventures, and Lightspeed, signaling strong institutional confidence. Its ecosystem has grown steadily over the past year, with increasing developer activity and wallet integrations becoming common entry points for users exploring the chain.
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The Airdrop That Never Was: How Sui Broke Community Trust
For months leading up to the token launch, there was widespread speculation that Sui would reward early adopters through an airdrop. Many users spent significant time interacting with testnets, completing quests, and engaging with Sui-based dApps—often at personal cost—expecting future financial returns.
Yet on April 10, 2023, Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Labs, put an end to rumors with a blunt tweet:
“Stop spreading misinformation. There is no SUI airdrop. There will be no SUI airdrop. Never.”
This announcement came as a shock to many who had interpreted earlier statements as encouraging participation. Let’s look at some key moments from Sui’s official communications:
- October 2022: "No official airdrop plans" — but no outright denial.
- November 2022: Launch of Sui Capys, a Web3 game demo explicitly labeled non-rewarding.
- December 2022: Announcement of a "Token Community Access Program," allowing select contributors early access to purchase tokens—still not an airdrop.
- March 2023: Reiteration of "no official airdrop," while launching Wave to Mainnet, a campaign incentivizing engagement.
The language used—phrases like “currently,” “temporarily,” and “no formal plans”—left room for interpretation. For many in the Chinese community, where crypto culture revolves heavily around airdrop farming, this ambiguity felt intentional. It created the perception that Sui leveraged community enthusiasm without delivering reciprocal value.
This broken expectation is central to the backlash. Users who invested time and gas fees now see their efforts as wasted—especially when compared to chains like Arbitrum, which delivered substantial rewards to early interactors.
Understanding Sui’s IEO Model and Market Valuation
Instead of an airdrop, Sui opted for an IEO model across three major exchanges:
- OKX
- Bybit
- KuCoin
A total of 178.6 million SUI tokens were allocated:
- OKX: 42.3M
- KuCoin: 42.3M
- Bybit: 94M
Participants needed to join Sui’s Discord before February 1, 2023, complete KYC, and qualify through a whitelist system dubbed the “Recognition Sale.” Winners received tokens at $0.10 each, with varying unlock schedules.
Comparing Sui vs. Aptos
Sui is often compared to Aptos, another Move-based Layer 1 founded by ex-Meta developers. Here’s how they stack up:
| Metric | Aptos (APT) | Sui (SUI) |
|---|---|---|
| Last Funding Valuation | ~$2 billion | ~$2 billion |
| Total Supply | 1 billion | 10 billion |
| Circulating Supply | ~187 million | ~178 million (IEO) |
| Current Price (Est.) | $10.1 | Expected ~$1.06 |
Based on valuation parity with Aptos, SUI could open around $1.06, representing a 10x return from the IEO price—a tempting prospect for buyers. Yet critics argue that despite similar valuations, Sui lacks comparable ecosystem maturity.
Another notable factor: FTX’s involvement. FTX invested $102 million in Mysten Labs’ Series B round and held warrants for nearly **890 million SUI tokens**. Though most were later repurchased by Mysten for $96.3 million (at ~$0.185 per token), this history adds complexity to Sui’s investor landscape.
Why the IEO Execution Felt Disorganized
Even among those willing to accept the no-airdrop stance, execution flaws further damaged trust:
- Email Errors: Some users received confirmation emails from Bybit despite selecting OKX or KuCoin during registration.
- KYC Barriers: Bybit’s strict KYC policies made participation difficult for users from mainland China.
- Website Issues: The Google Form for updating ID/email details briefly went offline.
- Whitelist Confusion: Over 340,000 users qualified for whitelist consideration, but only ~96,000 spots were available—allocated randomly.
These issues painted a picture of disorganization and indifference—especially jarring given Sui’s emphasis on developer experience and user-centric design.
As one KOL put it: "It feels less like a fair launch and more like a ‘water-drip fundraising’ campaign."
Expert Opinions: Are KOLs Still Bullish on Sui?
We surveyed several prominent voices in the Chinese crypto space:
On Community Backlash:
- @Woody (Venture Partner): Believes anger stems from disappointed “airdrop farmers.”
- @Raccoon Chan: Calls it an “expectation gap”—users felt promised something that never materialized.
- @Lsp.eth: Notes that while rules are messy, price action may ultimately silence critics: “Pump solves everything.”
On Investment Intentions:
- Most plan limited IEO participation or none at all.
- Several expressed interest in monitoring post-launch ecosystem growth before committing capital.
- One investor noted: “I’ll watch DeFi projects on Sui closely. The chain itself might not be worth holding long-term yet.”
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FAQs: Your Burning Questions About Sui Answered
Q: Did Sui completely rule out any form of airdrop?
A: Yes. In April 2023, the co-founder confirmed there will be no airdrop now or ever.
Q: Why didn’t Sui choose Binance for its IEO?
A: While unconfirmed officially, excluding Binance may reflect strategic targeting of Asian markets where OKX, KuCoin, and Bybit have stronger retail penetration.
Q: Can I still get SUI tokens after the IEO?
A: Yes—once listed on exchanges, SUI will be available for open trading on platforms like OKX and Bybit.
Q: How does Sui plan to grow its ecosystem without an airdrop?
A: Through direct grants, developer incentives, and partnerships—especially in GameFi and social applications.
Q: Is Sui better than Aptos?
A: Too early to tell. Both face similar challenges in ecosystem development. Sui appears more active currently, but neither has achieved breakout adoption.
Q: Was the IEO price fair?
A: At $0.10 with a projected market price near $1+, it offers strong upside potential—but comes with high risk due to concentration of early supply.
Final Thoughts: Can Sui Win Back Trust?
Sui stands at a crossroads. Technically promising and well-funded, it has all the ingredients for success—but its go-to-market strategy alienated a core base of supporters.
By skipping an inclusive airdrop and opting for an exclusive IEO model filled with logistical errors, Sui sent mixed signals about its values. While “pump and dump” dynamics may temporarily boost prices, sustainable growth requires loyal users and builders.
Moving forward, success hinges on:
- Delivering a robust mainnet launch (set for May 3)
- Attracting high-quality dApps and developers
- Engaging meaningfully with global communities—not just marketing to them
For investors:
If you believe in Sui’s long-term vision and technical edge, post-IEO dips could present entry opportunities. But proceed with caution—this is still a nascent ecosystem with unproven demand.
Ultimately, whether SUI becomes another Solana-level success story depends not just on code quality, but on rebuilding trust—one honest interaction at a time.
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