The Sui Foundation has denied allegations that insiders sold $400 million worth of SUI tokens during the recent price surge, asserting that lockups are being properly enforced.
The Sui Foundation has found itself in hot water after a crypto analyst raised concerns about alleged insider token sales during the recent surge in Sui’s price.
One thing that I've found more and more baffling in the last few weeks is the vertical ascent of SUI, with it quintupling off the lows (Ex 1). The market is starved for winners, and believes it has found one here, yet it all feels awfully chintzy for two reasons that I think feed… pic.twitter.com/VKISXpdxp1
— light (@lightcrypto) October 14, 2024
In a Monday tweet, on Oct. 14, pseudonymous analyst Lightcrypto claimed that “insiders” sold $400 million worth of (SUI) tokens, linking specific wallets associated with the initial coin offering to the alleged sales. Lightcrypto’s assertions sparked debate within the crypto community, as the analyst questioned the integrity of those building the Sui ecosystem.
“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 token into less informed buyers chasing momentum.”
Lightcrypto
In response, the Sui Foundation issued a statement on Oct. 15, refuting the claims, emphasizing that neither its employees nor investors associated with Mysten Labs, which developed the Sui blockchain, engaged in any such selling. The Foundation clarified that all token lockups are “enforced by qualified custodians and continuously monitored by Sui Foundation […].”
— Sui (@SuiNetwork) October 14, 2024Following 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,…
While the foundation did not specify any individuals, it suggested that Lightcrypto may have been referring to a wallet controlled by an “infrastructure partner” who holds tokens under a lockup schedule. Following this statement, the price of SUI fell by 1.7% to $2.21. Nevertheless, the token has seen a significant increase of 106% over the past 30 days, according to data from crypto.news’ price page.