Author: Julian
Original source: Sui World
Recently, Sui will officially launch the Mainnet on May 3 , and the news that Sui Token will be launched with OKX , Bybit, and Kucoin exchanges has aroused huge attention in the market. (Note: OKX, Bybit, and Kucoin are also members of MoveAccelerator)
At the same time, there are many voices in the community asking, Why not Binance? When Binance? As a star public chain that completed more than US$300 million in financing last year, like Aptos , Sui also received investment from Binance Labs, but why did Aptos receive huge initial support from Binance , while SUI did not choose Binance Launchpad?
This question can actually include and extend a series of questions, such as:
1. Why didn’t SUI choose Coinlist and CoinBase for public offering as rumored in the community?
2. What might prevent SUI and Binance from talking about Launchpad?
3. When will Binance list SUI?
4. What does it mean for the SUI ecology to choose CEX public offering/ IEO instead of on-chain AirDrop ?
This article only represents the opinions of the author and some people in the industry to exchange and organize to try to answer these questions. It does not represent the opinions of Sui World or any institution, nor does it constitute any financial and investment advice.
1. Why didn’t SUI choose Coinlist and Coinbase for public offering like the rumors in the community?
Keywords: compliance, decentralization.
In fact, these two answers can explain many problems today. In the end, Sui did not choose Coinlist or Coinbase for public offering, precisely because he wanted to achieve sufficient compliance and decentralization at the same time.
As early as the beginning of this year, Sui's founding team revealed when communicating with the community that they had considered choosing Coinbase for the public offering. Launching Coinbase is undoubtedly the best compliance path, but there is no sign of the IEO/public offering function that Coinbase has said to launch since 2019. In addition, Coinbase was also issued a Wells Notice by the US SEC last month, and was informed that the SEC would take enforcement action against it for violating investor protection laws. Coinbase would even consider moving its headquarters out of the United States. Therefore, at this stage, there are still compliance challenges for the project to do IEO on Coinbase.
The other is that CoinList released a "5.02.2023" teaser animation, users in the encryption community speculated that CoinList may conduct a Sui public offering on May 2. But as Sui said, the reason why CoinList was not chosen in the end may be the hope that through the community access program, decentralization and diversification of participants will be accelerated , and the geographic coverage as large as possible will allow broad participation from all regions of the world.
To sum up, SUI finally chose OKX, Bybit, and Kucoin instead of Coinlist and Coinbase for compliance and decentralization considerations.
2. What could prevent SUI from being listed on Binance Launchpad?
Key words: Exclusive agreement, Launchpad product rules, Perpetual contracts not allowed to be listed short
Since the launch of Binance’s first Launchpad(IEO) in 2019, 29 projects have gone live through Launchpad . The rules of IEO launched by other major platforms are also basically the same.
In this IEO of SUI, OKX, Bybit, and Kucoin, what is different from the past is that after confirming the number of winning lots for the first time, users can only unlock 1/13 SGD on that day, and the remaining 1/13 will be unlocked at the same time every month. All unlocked. At the same time, the platform will cooperate with SUI to start additional whitelists sales.
Looking back at Binance’s previous 29 Launchpad projects, none of them had batch unlocking rules, nor did they launch additional whitelists sales products specifically for project parties. Therefore, the restrictions on Launchpad product rules may be one of the reasons why Binance cannot choose SUI as Launchpad .
Compared with product rules, another more important reason is Binance’s exclusive agreement. Whether it is an ICO or an investment project, Binance will have some exclusive agreements for other trading platforms, which is also a common game rule in the industry.
Taking Aptos (APT) as an example, Binance participated in two rounds of investment in Aptos and has an exclusive agreement with Aptos not to cooperate with some platforms. Binance may also require SUI with the same requirement. Therefore, Binance cannot agree to SUI’s IEO on multiple platforms at the same time, and SUI does not accept Binance’s exclusive agreement . This may be one of the reasons why SUI and Binance did not agree on Launchpad .
It is worth noting that even if the project party starts its debut on Binance and signs an exclusive agreement, it is still a double-edged sword. For example, Aptos (APT) once asked major exchanges not to launch perpetual contracts within two weeks, but on the day Binance launched APT, it launched APTUSDT 1-25 times perpetual contracts, while mainstream contract exchanges OKX, Bybit and others did not announce the launch of the perpetual contract at first, and did not follow up until Binance launched the perpetual contract.
Sui may also have asked major exchanges not to allow short-selling of perpetual contracts to be launched within a certain period of time , but Binance ignored it, so they chose other exchanges to launch, and it is possible to reach an agreement to restrict the listing of short- Derivatives.
3. When will SUI be listed on Binance?
Keywords: Ask CZ .
I really dare not talk nonsense about this, I have to ask CZ. However, some Binance-related business people said that SUI should be very confident that it will eventually be listed on Binance, so it is the same for SUI to launch IEO on other exchanges first, and then go to Binance later.
Therefore, there is a possibility that Binance also announced the launch of SUI a few days before the mainnet launch. If Binance launches SUI at this time, it may also launch perpetual contracts at the same time.
Another possibility is that, according to the style of Binance, it will wait until the SUI network is stable and meets Binance’s listing standards before launching. The core of the so-called full Binance listing standard is the number of users (users).
If the popularity of SUI can maintain the popularity of the testnet before the mainnet goes live, then the number of users will definitely be fine. If SUI is the same as Aptos, with hundreds of active projects and 6000+ TPS in the test network, and the ecological projects quickly cool down after the main network is launched, and the TPS remains in single digits for a long time, then Binance may delay the launch.
If SUI has not met the listing standards of Binance, then it may wait until the chips of Binance investing in SUI start to be unlocked, and then go online at a certain time. For details, you can pay attention to the relevant unlocking timetable.
4. What does it mean for the SUI ecology to choose public offering/IEO instead of AirDrop?
Keywords: lack of initial chips on the chain
Sui has made it clear on several occasions that there will be no SUI AirDrop plan. The so-called AirDrop refers to the large-scale distribution of tokens to existing or potential users through blockchain technology (initial chip distribution) to enhance project awareness (marketing).
It has to be said that Sui’s 100,000-scale community access plan (public offering) and the IEO participation of hundreds of thousands of potential users have indeed achieved a very large marketing effect. It also severely hit the wool party on the chain and rewarded real users to a greater extent, which is an innovative attempt.
But from the perspective of initial chip distribution, it means that most of the value of Sui's initial chip distribution is captured by CEX users, for example, platform currency holders capture part of the value of Sui Token's initial distribution.
Sui's initial chip distribution is all in the CEX centralized exchange, not on the chain, which means that when the main network is launched, no ordinary user's on-chain address holds Sui Token. This may not be good news for some ecological projects, because there is a lack of initial bargaining chips on the chain.
Because users need to purchase Sui Token in the CEX centralized exchange first, and then mention it on the chain to participate in ecological projects. Even for whitelists sales users targeting ecological contributors, they must first become CEX users, then subscribe for Sui Token, and then refer to the chain to participate in ecological projects. This withdrawal process will lose a considerable number of users.
In contrast, if L1 conducts an AirDrop on the chain, even if more than 80% of the users receive the AirDrop and immediately recharge to the exchange for sale, 20% of the addresses on the chain will still hold the AirDrop assets, and these assets on the chain will be used These are very important for the cold start of early ecological projects.
It is worth mentioning that for the lack of initial chips on the chain for early ecological projects, MystenLabs and SuiFoundation have organized some institutions to help provide Liquidity/TVL plans for some infrastructure projects that have invested. In the end, how the Sui ecological project will develop requires further observation.
