Sui token surged 120%, facing allegations of insider selling.
Sui Foundation denied insider sales, attributing them to infrastructure partners.
The Sui (SUI) token has seen a remarkable rally, gaining over 120% in the past month to trade at $2.25 as of October 14. This surge, while impressive, has stirred controversy, as allegations of insider selling have surfaced, casting a shadow over the token’s performance.
Crypto analyst Light, in a post on X (formerly Twitter), claimed that wallets linked to Sui’s initial coin offering (ICO) sold more than $400 million worth of SUI tokens during the recent price increase. Light also suggested that this selling began when prices were lower and intensified as the token surged. This has raised concerns among investors, as large-scale sales by insiders or early holders can put downward pressure on a token’s price, potentially destabilising its rally.
Following an allegation of “Sui insiders selling $400M in tokens throughout this run-up,” Sui Foundation would like to respond directly to this individual: 1. No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors,…
— Sui (@SuiNetwork) October 14, 2024
Meanwhile, in response to these allegations, the Sui Foundation issued a statement on October 14 denying any involvement in insider selling. The foundation clarified that no insiders—such as employees, founders, or investors—had sold tokens during the rally or violated any lockup agreements. They attributed the sales to an infrastructure partner operating within the agreed lockup schedule, emphasizing that all token movements were compliant and monitored.
Upcoming Token Unlock Set to Add Selling Pressure
Adding to the situation, another potential wave of selling could occur soon. On October 23, $114 million worth of SUI tokens, representing around 2.32% of the circulating supply, are set to be unlocked. This event could further increase selling pressure on the token.
Despite these concerns, SUI has gained more than 164% year-to-date. Some analysts see the Sui blockchain emerging as a strong competitor to Solana, another prominent Layer-1 blockchain. However, investor caution remains, as further large-scale sales could impact the token’s future trajectory.
As the debate continues, market watchers will closely monitor both insider activity and the upcoming token unlock event to gauge the token’s sustainability amid the ongoing rally.
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