The Sui Foundation has denied allegations of insider selling following the recent price surge of the SUI token. On Monday, the nonprofit organization behind the Sui blockchain denied allegations that employees or investors sold $400 million worth of tokens during the rally.
Sui Foundation Denies $400 Million Insider Dealing Allegations Amid Token Surge
“Neither the Foundation nor Mysten Labs employees (including Mysten Labs founders) nor ML investors individually or collectively sold more than $400 million worth of tokens during this period,” the Sui Foundation said in a statement.
The Pseudonymous Analyst’s Claims
The allegations came from crypto analyst Lightcrypto on X (formerly Twitter), who accused insiders of liquidating SUI tokens during the rally. Lightcrypto’s analysis linked the wallets responsible for these sales to the Sui initial coin offering (ICO), but no specific wallet addresses were disclosed.
“It brings no comfort that the people building this ecosystem who probably know the value of this token the most are dumping hundreds of millions of dollars on less-informed buyers chasing momentum,” Lightcrypto tweeted, casting doubt on the token’s valuation and the performance of its blockchain.
Token Price Increase
The price of SUI has seen significant growth, rising 100% in the past month and 19% in the past week. According to The Block’s SUI price page, the token is currently trading at $2.22, but has dropped 0.17% in the past 24 hours.
The Sui Foundation claimed that the wallet in question belongs to an infrastructure partner that holds the tokens under a lockup program.
“All token lockups are implemented by qualified custodians and continuously monitored by the Sui Foundation, and this is in mutual compliance,” the foundation added.
*This is not investment advice.
