The recent triple-digit rally of the Sui token has sparked allegations of insider selling among cryptocurrency investors, despite its impressive price gains.
Sui (SUI) rose over 120% during the past month to trade at $2.25 as of 10:13 am UTC on Oct. 14. The token is up over 16% in the past week, according to Cointelegraph data.
SUI/USD, 1-month chart. Source: Cointelegraph
However, allegations of insider selling have arisen despite the Sui tokenâs bullish price action.Â
Wallets associated with the SUI initial coin offering (ICO) have reportedly sold more than $400 million worth of tokens during the rally, according to pseudonymous crypto analyst Light, who posted the information on X on Oct. 14. Light stated:
âInsiders (including what is likely a large foundation wallet) have sold $400 million in tokens throughout this run-up, had already begun selling material amounts at much lower prices, and are even accelerating their selling at these more elevated levels.â
Insiders holding a significant amount of a cryptocurrencyâs circulating supply can significantly impact the tokenâs price. Large-scale selling from these holders can lead to downside pressure.
Major SUI ICO wallet distribution. Source: Light
More SUI selling pressure?
The Sui token could see more selling pressure before the end of the month.
On Oct. 23, $114 million worth of Sui tokens â equivalent to 2.32% of the circulating supply â are set to be unlocked. According to Token Unlocks data, more than 28% of the total SUI token supply is currently unlocked.
SUI vesting. Source: Token Unlocks
Of the total SUI token supply, 14% was allocated to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves, according to data from Coincarp.
SUI distribution. Source: Coincarp
Cointelegraph has approached Sui for comment.
Can SUIâs rally continue despite the selling?
While the Sui token could continue its bullish momentum, the large-scale selling raises significant concerns for new investors.
According to Light, there is âonly one endingâ for tokens where insiders are selling to retail investors. The pseudonymous crypto analyst added:
âIt does not bring comfort that the people building this ecosystem, the people who arguably know this token's value best, are unloading hundreds of millions of dollars of the token into less informed buyers chasing momentum.â
The SUI token is currently up over 164% year-to-date (YTD).
Is Sui the new SOL? Why you should NOT ignore it. Source: Cointelegraph
The SUI token is up more than 164% year-to-date. Some analysts believe the Sui Network could become a strong competitor to Solana and emerge as a leading Layer-1 blockchain, according to crypto research firm K33.
Magazine: Justin Sunâs SUI-farming sins, PEPEâs wild run, 3ACâs oyster philosophy: Asia Express
