The community questioned SUI’s insider trading, and the foundation responded sternly
Recently, the cryptocurrency market has regained its popularity, with Bitcoin rising more than 5% in 24 hours, once exceeding $66,500. However, the public chain Sui, which has performed well recently, bucked the trend and fell against this background, attracting market attention.
According to CoinGecko data, $SUI began to correct after hitting a new high of $2.34 on October 14, fluctuating around $2.25. At the time of writing, $SUI was quoted at $2.23, down 0.6% in the past 24 hours.
A rumor spread in the market. Anonymous analyst Light posted on In response to this, Sui officially issued a statement at approximately 2 a.m. on October 15th, solemnly responding to two points:
No insiders, including Foundation or Mysten Labs employees (including Mysten Labs’ founders) and ML investors, individually or combined, sold $400 million worth of tokens during the period. Insiders were not involved in any early sales or violations of the lock-up period and circulating supply plan.
While the publisher did not provide a wallet address, we believe the likely owner of the wallet is an infrastructure partner that holds the tokens and has a staking arrangement. Lock-up periods for all tokens are executed by qualified custodians and continuously monitored by the SUI Foundation, which complies with relevant regulations.
Source: X Sui officially issued a statement in response to the insider selling controversy
The community had mixed reactions, and officials further clarified
However, some community members were not convinced by the foundation's response. Some netizens questioned: "Why does the "infrastructure partner" have 400 million tokens?" Some netizens even asked about becoming an "infrastructure partner." In addition, many KOLs with a large number of fans (such as Beanie, Kyle Samani ) also posted a message saying he was very disappointed with this explanation.
Source: X KOL expressed dissatisfaction with Sui’s public response
In this regard, Mysten Labs co-founder and CEO Evan emphasized that no one was selling $400 million worth of $SUI, whether it was infrastructure partners, the SUI Foundation or Mysten Labs. He said the statement mentioned that the wallet belonged to an infrastructure partner to make it clear that it was not owned by the foundation. "The only 'statement' in the original post was that the tokens had been moved to a different wallet," he emphasized.
Source: X Evan discusses with Beanie on the insider selling controversy
$SUI has performed well, will its future trend attract attention?
Despite the insider trading accusations, $SUI is still up more than 109% in the past 30 days. The strong performance is mainly due to its increased network activity, with trading volume and total value locked (TVL) showing an upward trend. According to DefiLlama data, Sui’s TVL has reached $1.136 billion. In addition, Sui has also benefited from the integration of stablecoins $USDT and $USDC, as well as the increase in DeFi protocols.
Source: DefiLlama Sui on-chain data
According to Token Unlocks data, $144 million worth of $SUI will be unlocked on November 1, accounting for 2.32% of the circulating supply. Currently, approximately 28% of the $SUI supply is unlocked. Market analysts warn that a massive sell-off could put pressure on the price of $SUI and investors should proceed with caution.
Image source: Token Unlocks $SUI unlocking overview
Overall, the Sui Foundation's clarifying response has temporarily calmed some doubts, but the market remains on the sidelines regarding possible future sell-offs. Amid heightened volatility in the crypto market, the future trend of $SUI deserves continued attention.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
