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Red Bull Racing Partners with SUI But Price Keeps Falling: Can $SUI Race Ahead?

Published July 7, 2023 11:55 AM
Teuta Franjkovic
Published July 7, 2023 11:55 AM
Key Takeaways
  • SUI token fell around 16% in the last 30 days and by almost 70% from its all-time high price
  • SUI Foundation denied claims that it sold stake reward tokens on Binance – claims that brought the price down in the first place
  • The alliance between SUI and the Oracle Red Bull Racing team in Formula One has the potential to boost the value of the SUI token

Oracle Red Bull Racing recently presented a new opportunity for fans to interact with the Team through the use of cutting-edge blockchain technology just a few weeks after choosing SUI as its official blockchain partner. The Oracle Red Bull Racing Validator on SUI is officially launched, and the Team is partnering with Mysten Labs to unveil it. Mysten Labs, the original SUI contributor, will control and run the validator.

Red Bull Partnership to Broaden SUI Fan Base

By announcing a multi-year cooperation with cutting-edge software startup Mysten Labs to build on SUI, which will serve as the Team’s Official Blockchain partner, Oracle Red Bull Racing  plans to enhance its relationship with fans all across the world. However, this could be a good opportunity for SUI to enhance its relationship with buyers and investors.

SUI, a groundbreaking Layer 1 blockchain and smart contract platform, was introduced in May. It enables on-chain experiences that keep users completely engaged and generates dynamic, composable, and cutting-edge on-chain assets.

Oracle Red Bull Racing thoroughly examined the market to identify a blockchain that enables race fans to interact in unique ways. Through an expanded selection of interactive digital experiences that are available to a worldwide audience, SUI will allow fans to connect with Oracle Red Bull Racing.

Oracle Red Bull Racing Team Principal and CEO Christian Horner stated that Oracle Red Bull Racing was an early adopter of Blockchain technology in Formula 1, recognizing its potential to connect fans all over the world with the team in a truly unique and forward-thinking way”.

“Partnering with SUI will elevate that experience, making access easier, more secure, and engaging,” he added.

Evan Cheng, Co-Founder, and Chief Executive Officer of Mysten Labs, commented that blockchain technology’s potential to change how humans transact, interact and communicate fundamentally is enormous.

“We are extremely pleased to match SUI’s best-in-class performance with Oracle Red Bull Racing. With this partnership, we can demonstrate the true power of blockchain technology to build communities around novel and ground-breaking connected experiences,” he asserted.

Blockchains are databases; however, they differ from conventional databases in that public blockchains are decentralized, as opposed to traditional databases that are governed by a single authority.

Blockchains rely on a network of computers to decide what data will be added, updated, or removed from storage, as opposed to a centralized authority doing so.

They refer to the devices that perform this task as “validators.” The blockchain would stop working without these validators. In order to verify that only legitimate data is put to the blockchain and support the SUI protocol, the ORBR Validator will, like other validators on the network, take part in the network’s consensus process.

Red Bull has previously entered the cryptocurrency market. It agreed to a $150 million transaction  with the derivatives exchange Bybit last year. SUI will launch a number of digital experiences for racing fans during the upcoming months, according to the team.

Why Is SUI Falling?

Despite having great promise, SUI recently experienced a setback after being accused of selling staking rewards on the Binance cryptocurrency market. These allegations were swiftly denied by the SUI Foundation, who insisted they had not distributed any staking incentives or other tokens from locked and non-circulating staked SUI on Binance or elsewhere. The price of the SUI token was impacted by the announcement of these accusations and the subsequent refutation.

SUI chart
Credit: CoinGecko

Data from CoinGecko show that the token has dropped by roughly 16% in the last 30 days and by almost 70% from its all-time high price, reflecting the cryptocurrency market’s turbulence and sensitivity.

Investors have understandably been wary as a result of these occurrences, causing them to carefully analyze their investment choices and the potential of SUI coins.

SUI Heavily Blamed of Selling its Locked Stake to Binance.

Allegations that the developers of the SUI network and its native SUI token unlocked staking rewards and “dumped” them on Binance have been immediately refuted by the Sui network team.

In a five-part Twitter thread on June 27, the SUI Foundation refuted the assertion, claiming that none of the locked or non-circulating tokens, including SUI staking awards, have been sold.

Sui Foundation was accused of “dumping rewards from *locked* and *non-circulating* staked SUI” on Binance in a recent denial in reaction to allegations made by anonymous cryptocurrency pundit DeFiSquared in a post on Twitter on June 27.

Concerns About SUI Supply

Traders and experts have demonstrated their belief in the SUI project’s ambitions to develop into a desirable blockchain substitute.

However, there are issues with SUI’s supply schedule as well. Notably, the Sui Foundation intends to boost the supply of SUI by 15% by the end of 2023, which, according to expert Dmitriy Lavrov , may lead traders to hold off on entering the market until prices have further to fall.

Let’s not forget that, at the beginning, traders who believed that SUI, a new addition to the large number of layer-1 blockchain projects, maybe more scalable than its competitors supported SUI’s first increase.

SUI’s initial contributor, already mentioned Mysten Labs, claimed that because it can execute roughly 300,000 transactions per second, it could become the first internet-scale programmable blockchain platform. Just for comparison, Solana can manage 10,000 transactions per second.

Through two investment rounds in 2021 and 2022, venture capitalists like Andreessen Horowitz, FTX Ventures, and others contributed $336 million to the SUI project. According to Mysten Labs, the rounds granted investors access to the company’s stock rather than SUI tokens.