Reports of the Sui Foundation insider selling of more than $400 million worth of native tokens have come amid a staggering 104% SUI price rally over the past month. The Foundation has responded to this clearing the air on the matter with the native cryptocurrency SUI dropping 2% despite the broader market rally.
Sui Foundation Faces Allegations of Insider Selling
Popular crypto analyst @lightcrypto wrote on the X platform that the wallets linked to the Sui Foundation sold more than $400 million worth of SUI tokens during the SUI price rally over the past few months.
The analyst pointed out that since late June, an address identified as 0xbe90…950aa8 has redeemed over 82.6 million SUI tokens, valued at approximately $184 million, from the stake account 0x7f3b…3239e4.
Moreover, the wallet transferred the SUI tokens in small, high-frequency transactions to major exchanges including OKX, Binance, and Bybit. Notably, the SUI tokens in the stake account 0x7f3b…3239e4 originate from the Sui Foundation’s address, 0x341f…17fae1.
However, the Sui Foundation has refuted these allegations of any such insider selling. In its message on the X platform, it wrote:
“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, either individually or combined. Insiders have not been involved in any preemptive selling or violation of lockups and the circulating supply schedule”.
Additionally, the Sui Foundation also revealed that Light Crypto didn’t disclose the specific address, foundation members, no insiders, or employees have sold tokens. They believe Light was referring to Sui’s infrastructure partners, who hold tokens in accordance with the lock-up period.
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
SUI Price Action Ahead
SUI is the native cryptocurrency of the Layer-1 Sui blockchain platform that supports the need for global adoption via a secure and scalable platform. With SUI hitting an all-time high of $2.34 on Monday, the recent developments around Sui Foundation insider selling have induced some selling pressure on the altcoin.
Popular crypto analyst Ali Martinez has flashed a warning signal cautioning investors to build fresh SUI positions. Martinez highlighted that the TD Sequential indicator, which has accurately predicted the SUI price movements on the weekly chart, is now signaling a sell. Some market analysts have also been predicting that SUI will drop 43% ahead.
The Sui blockchain witnessed a strong surge in network activity driven by the growing popularity of meme coin trading. As per the details provided by DeFiLlama, the on-chain trading volume has reached around $200 million. This increased activity has also boosted Sui’s total value locked (TVL) to a record high of $1.13 billion, marking a significant achievement for the blockchain.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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