Binance Launches SUI Token Perpetual Contracts; SUI Price Nosedives By 70%

Binance, the world’s largest crypto trading platform has announced it plans to launch USDⓈ-M SUI perpetual contract as a way to further support the digital currency whose mainnet launched earlier today. According to the Binance announcement, the launch was slated for May 3 at 16:00 UTC.

With the underlying asset for the perpetual contract being SUI token, the trading platform said the settlement will be made using the Tether (USDT) stablecoin. While the trading platform noted that the new product will support a multi asset mode, it also confirmed that the perpetual contracts will be accessible for trading 24/7.

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One of the most important feature that the Binance USDⓈ-M SUI perpetual contract is launching with is that it comes with a 50x leverage with a tick size of 0.0001.

Besides Binance being one of the first exchanges to unveil it will be supporting the SUI token launch, it is also effectively now ranking as the trading platform that will be pioneering the listing of SUI’s perpetual contract. 

In a note to prospective SUI perpetual contract traders, Binance said it will be observing the market’s momentum and may adjust the tick size and other launch parameters if there is a need to do so.

SUI Token Seeing Intense Volatility

Sui Network is arguably the biggest protocol that made its way into the Web3.0 world thus far this year and the anticipation was met with extreme token volatility post-mainnet launch.

As reported earlier by Coingape, the SUI token recorded a massive 70% slump in its price after its launch, an indication that early backers are offloading the digital currency. While this is not uncommon for new token launches, the Sui slump came almost at the same time when XIRTAM, a token supported by Cult DAO, reportedly rug-pulled.

The sentiment in the possibility of the price slumping has pushed big holders including several known influencers to offload their bags. At the time of writing, SUI is trading at a price of $1.39, down by 69% over the past 24 hours.

For what it’s worth, the digital currency is maintaining a crucial support at $1.30, a level that is worth watching as the protocol’s ecosystem evolves.