Sui Foundation Debunks $400M Insider Selling Accusation as Token Price Hit New All-time High

In a recent X post, prominent crypto analyst Lightcrypto alleged that an insider sold $400 million in SUI tokens during the recent price rallies.

The Sui Foundation has vehemently denied these claims, stating that no insider or its employees have made such token sales during this period.

This fiasco comes as thetoken's price hit a new all-time high after spiking by more than 108% over the past month.

The $400 Million Insider Selling Allegation

The native token of the Sui blockchain has witnessed a remarkable price increase since September.

According to data from CoinMarketCap, the price of the token has increased by over 108% in the past 30 days and reached a new all-time high of $2.36 on October 14.

Amid this rally, pseudonymous crypto market analyst Lightcrypto shared an X post. Lightcrypto questioned the reason behind the SUI rally, alleging that a wallet belonging to the Sui Foundation sold $400 million in tokens throughout the run.

However, the analyst didn't reveal the specific wallet addresses responsible for the insider selling.

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

Light further noted that it is wrong for the ecosystem builders who best know the token's value to be offloading tokens worth millions of dollars to less informed buyers.

They also questioned the Sui blockchain's potential association with the token's valuation.

Sui Foundation Responds

The Sui Foundation quickly intervened to clear the air via an October 14 statement on the network's official X page.

The statement strongly rebutted all claims, asserting that no Sui insider, employees, or associated entities sold $400 million in Sui tokens during the period.

Part of the statement reads: 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."

Further, the Foundation noted that the poster failed to indicate a specific wallet address. However, it believes they could be referring to a wallet belonging to an infrastructure partner whose tokens are under a lockup schedule.

According to the statement, all locked-up tokens are managed by custodians and monitored by the Sui Foundation. Therefore, it noted that the infrastructure partner is still compliant and has not violated the lockups.

How is The Token Faring Today?

The price of the token has surged significantly over the past weeks. The token surged alongside Bitcoin in March to reach an all-time high of $2.19. However, it later pulled back to as low as $0.53 in August.

Surprisingly, it started picking up in mid-August, sustaining momentum despite the gloomy market outlook in September. On October 14, it hit a new all-time high of $2.36.

While it has dropped by over 5% to trade at $2.24, its current price remains over 512% higher than its all-time low of $0.3643 recorded on October 19 last year.

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