Sui Drops 7.1% as VARA Partnership Aims to Boost Dubai's Blockchain Hub

Sui's latest price was $2.95, down 7.099% in the last 24 hours. SuiHub MENA, a Dubai-based business hub for Sui Network developers serving the MENA region, has entered into a partnership with the Dubai Virtual Assets Regulatory Authority (VARA). Both parties signed an agreement to support startups, develop local talent, and share insights for growing the virtual asset space in the Middle East. The collaboration aims to make Dubai a global hotspot for virtual asset innovation. The Dubai government established VARA in 2022 as the agency responsible for overseeing the regulation and supervision of virtual assets within the Emirate. Meanwhile, the Sui Foundation backs SuiHub MENA, which supports builders and developers in the Web3 ecosystem.

SuiHub MENA and VARA will engage in activities that simplify compliance processes for startups, provide advisory support, and generate insights to guide future virtual asset policies in the Dubai region. This aligns with the Dubai Emirate’s goal of creating a friendly atmosphere for blockchain and virtual asset firms. They will provide educational support for startups on regulation and licensing, host workshops and guidance for startups navigating Dubai’s licensing regime, and organize advisory sessions and provide educational materials to guide founders and participants. VARA will support the SuiHub MENA ecosystem development, starting with strategic engagements with government stakeholders to support the latter’s flagship innovation center in Dubai. The parties will also join hands to explore research opportunities within the Dubai region.

The Sui project team considers partnering with VARA a step in the right direction. The team revealed its excitement by posting about the latest development on X, calling it “Big news from the Middle East” and noting how proud the project was to collaborate with VARA in growing Dubai’s blockchain industry. On May 22, 2025, Cetus Protocol, the primary decentralized exchange (DEX) on the Sui blockchain, suffered a major hack, marking one of the largest decentralized finance (DeFi) breaches in cryptocurrency history. An attacker exploited Cetus’ pricing mechanism flaw, stealing approximately $260 million in digital assets. This incident significantly impacted the Sui community, causing the Sui (SUI) token price to drop by about 15%. The Cetus DEX facilitates efficient token trading and liquidity provision within the Sui ecosystem. The platform’s rapid growth made it a prime target for attackers. A previously undetected error in the code of Cetus DEX allowed the exploit, enabling the theft of millions. This event highlights the ongoing challenges of ensuring robust security in rapidly expanding DeFi ecosystems, even with significant efforts to prioritize safety.

In response, Sui validators implemented wallet freezes on the hacker’s addresses, an action that, while protective, sparked debate over the network’s decentralization. Critics argue that such centralized intervention contradicts the foundational principles of blockchain technology, raising questions about governance and control within the Sui ecosystem. The community’s reaction to the hack and subsequent wallet freezes has been mixed. While many users appreciate the proactive steps to safeguard funds, others express concern about potential precedents for centralized control. This tension highlights the delicate balance between security and decentralization that blockchain projects must navigate. Moving forward, the Sui development team faces the challenge of restoring confidence through enhanced security protocols and transparent governance mechanisms. Strengthening these areas will be critical to attracting new users and investors, especially in a competitive DeFi landscape.

The U.S. Securities and Exchange Commission’s decision to defer its ruling on Canary Capital’s spot SUI ETF application has introduced fresh volatility for Sui investors. This delay, announced on June 4, prolongs regulatory uncertainty, a critical factor weighing on the token’s price trajectory. Regulatory clarity remains a pivotal driver for institutional adoption and market confidence in crypto assets, and the SEC’s cautious stance signals ongoing scrutiny of Sui’s market positioning. Following the announcement, Sui’s price retreated to near weekly lows around $3.06, echoing the sharp downturn experienced during the May 30 flash crash. This price action underscores how regulatory developments directly influence investor sentiment and trading behavior in the crypto space. The SEC’s repeated delays underscore a broader hesitance to fully integrate crypto into the existing financial regulatory framework. This cautious approach highlights the agency’s struggle to reconcile decentralized assets with rules designed for traditional markets. Therefore, until comprehensive and tailored regulations are introduced, the SEC is likely to continue taking a slow and conservative stance.

Adding to the unease, the Sui network recently made headlines for another reason — validators reportedly locked up approximately $162 million in stolen assets connected to the recent Cetus protocol exploit. This double blow of regulatory delay and security concerns has placed the project under intense scrutiny. The Cetus Protocol hack remains a significant drag on Sui’s ecosystem health. As a core decentralized finance (DeFi) platform on Sui, Cetus facilitated token swaps and yield farming for over 62,000 active users, generating more than $7.15 million in daily trading fees prior to the breach. The hack not only inflicted direct financial losses but also severely undermined trust in the platform’s security. The Sui project team faces the challenge of restoring confidence through enhanced security protocols and transparent governance mechanisms. Strengthening these areas will be critical to attracting new users and investors, especially in a competitive DeFi landscape.