$SUI Decisively short!

Grayscale has just released a research report that is aggressively hyping SUI’s “Gas-free stablecoin transfers,” claiming it solves payment friction and is pushing retail sentiment to the sky. But when Wall Street institutions start openly going bullish on the free transfer feature, that’s a distribution signal. I directly entered with a full-position short—$320,000!

1. Grayscale’s call-hype instead exposes the ecosystem’s predicament. The free transfer feature needs Grayscale to hype it—this precisely shows that SUI lacks real user scenarios. Even basic transfers need gas-free incentives to attract users. With news this major, the price still can’t effectively break through $1.10. There’s a gap in buy orders at higher levels, while sell orders dominate—classic “good news is already fully priced in.” Also, currently only about 40% of the supply is circulating, and the remaining 60% of tokens are waiting to flow into the secondary market.

2. A flood of token unlocks is about to pour in. On June 1 at 8 a.m., SUI will unlock approximately 44 million tokens, worth about $46.2 million, accounting for 1.32% of the current circulating supply. New supply will be added at a rate of 42 million to 53 million tokens per month until 2030. Low-cost chips keep flooding in, and buy orders simply can’t absorb them.

3. The ecosystem triggers a chain reaction of disasters; security and trust are riddled with flaws. Aftermath Finance was hacked for 1.1 million USDC, and compensation will require a long period of manual review; DeepBook’s core protocol generated $239.7k in bad debt. This is already the 7th major security incident within 12 months, and the foundation of institutional trust has been systematically destroyed.

With a $320,000 full-position short locked in—waiting for the gas-free narrative hype to cool down, then for the free fall!