The Sui Foundation has pushed back against recent allegations that $400 million worth of Sui tokens were sold on the open market by insiders during the token’s price surge. The non-profit organization, which supports the Sui blockchain, firmly denied any involvement from its employees or those at Mysten Labs, the blockchain’s core contributor.

In a statement on Monday, the foundation clarified, “No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors, have sold $400M worth of tokens during this period.”

The allegations were brought forward by a pseudonymous crypto analyst known as Lightcrypto, who, on social media platform X, suggested that wallets linked to Sui’s initial coin offering were responsible for selling $400 million worth of tokens during the recent run-up in Sui’s price. However, Lightcrypto did not disclose any specific wallet addresses linked to these claims.

Sui’s Recent Price Rally

Sui’s token has seen a significant rally, increasing by around 100% over the past month and 19% in the last week. Despite this upward trend, the allegations have raised concerns about the potential motivations behind the price movement. Lightcrypto questioned whether the surge was driven by the blockchain’s actual utility or if insiders were capitalizing on the token’s momentum.

In a tweet, Lightcrypto argued, “It 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.” This statement fueled speculation around the integrity of the rally and Sui’s long-term potential as a blockchain.

Foundation Points to “Infrastructure Partner”

In response to the accusations, the Sui Foundation suggested that the wallet responsible for the $400 million sale might belong to an “infrastructure partner” holding tokens under a lock-up schedule. The foundation emphasized that all token lockups are monitored by qualified custodians and that the partner in question is fully compliant with these regulations.

At the time of writing, Sui is trading at $2.22, down slightly by 0.17% over the past day. Notably, it is one of the hottest meme coin this year.

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