The Sui Foundation, a non-profit firm supporting the Sui blockchain, has openly refuted allegations of insider selling of $400 million worth of its native coin, SUI, during the recent price surge. It attributes the sale to an infrastructure partner who has held the tokens under a lockup schedule for a long while.
Analyst Accuses Sui Foundation
Famous crypto analyst Light revealed on Monday that wallets linked to Sui Network’s initial coin offering (ICO) concluded May 2023 had sold about $400 million worth of SUI during the recent price surge that took the token to its all-time high of $2.368.
After analyzing the price movement, Light stated that an insider must have made the sale. He claimed that insiders who know the token’s best value are offloading hundreds of millions, leaving uninformed retail investors in the game.
“Something I think few know — insiders (including what is likely a large foundation wallet) have sold $400 million in tokens throughout this run-up (Ex 2), had already begun selling material amounts at much lower prices, and are even accelerating their selling at these more elevated levels (Ex 3),” he said.
Sui Foundation Responds
Following the allegations, the Sui Foundation promptly released a statement on X to clarify its position on the $400 million transaction.
The firm stressed that no employee or co-founder of Sui Foundation or Mysten Labs has sold $400 million worth of SUI during the price rally period, either individually or collectively, adding that no insiders have been involved in violation of the network’s lockup and circulating supply schedule.
The foundation stated further that the wallet involved in the transaction may be owned by an infrastructure partner whose tokens have been locked over time. He most likely sold the tokens following a recent unlocking.
Strengthening its network users’ and SUI investors’ confidence in its blockchain system and projects, the foundation added that “all token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance.”
According to live price data from CryptocurrenciesToWatch, SUI trades at $2.23, an increase of over 11% within the past seven days. Some hours ago, the coin unlocked an all-time high (ATH) of $2.35.
