Sui Foundation Clears the Air on $400 Million Insider Selling, SUI Price Drops

News about the Sui Foundation selling over $400 million in native tokens emerged during a remarkable 104% increase in SUI’s value over the past month. The Foundation addressed this issue, providing clarification on the matter, yet the price of the native cryptocurrency SUI still decreased by 2%, even as the broader market experienced a rally.

Sui Foundation Faces Allegations of Insider Selling

According to well-known crypto expert lightcrypto, posted on the X platform, the wallets associated with the Sui Foundation have offloaded over $400 million worth of SUI tokens during the recent surge in SUI prices over the last couple of months.

The analyst highlighted that starting in late June, the address labeled as 0xbe90…950aa8 has withdrawn more than 82.6 million SUI tokens, worth around $184 million, from the deposit account 0x7f3b…3239e4.

Additionally, it was observed that the wallet frequently and in small amounts moved SUI tokens to significant exchanges such as OKX, Binance, and Bybit. Importantly, the SUI tokens stored in account 0x7f3b…3239e4 can be traced back to the Sui Foundation’s address, 0x341f…17fae1.

Contrary to those claims, the Sui Foundation has denied any instances of insider trading. In a post on the X platform, they stated:

During this specific timeframe, neither employees of the Foundation nor Mysten Labs (including its founders), nor investors in Mysten Labs, have collectively sold tokens valued at $400 million. Furthermore, there has been no instance of insider selling ahead of time or breach of lockups by these individuals, and the current supply schedule remains unaltered.

Furthermore, the Sui Foundation clarified that Light Crypto failed to disclose the exact token-holding addresses, foundation members, non-insiders, or employees who haven’t offloaded their tokens. They suspect that when Light mentioned “Light,” they were actually referring to Sui’s infrastructure partners, who hold tokens during the prescribed lock-up period.

In response to the claim that “Sui insiders were secretly selling $400M worth of tokens during this price surge,” we, at the Sui Foundation, would like to address these allegations directly.

Exclusively outsiders are invited: Neither staff members from the Foundation or Mysten Labs (comprising its founders as well) nor Mysten Labs’ investors will be included.

— Sui (@SuiNetwork) October 14, 2024

SUI Price Action Ahead

As a researcher delving into the realm of blockchain technology, I’m currently focusing on the Sui blockchain platform, home to its native cryptocurrency, SUI. This platform is designed with global adoption in mind, offering a secure and scalable solution. Just yesterday, SUI reached an unprecedented peak of $2.34. However, the recent controversy surrounding insider selling at the Sui Foundation has introduced a wave of selling pressure on this altcoin.

crypto expert Ali Martinez advises investors to create new positions in SUI with caution, as he’s raised a red flag based on the TD Sequential indicator. This technical tool has accurately forecasted SUI price fluctuations in the past, and now indicates a sell. Some market analysts also anticipate that SUI could decrease by approximately 43% in the near future.

Sui Foundation Clears the Air on $400 Million Insider Selling, SUI Price Drops

The Sui blockchain has experienced a considerable spike in network activity due to the escalating interest in meme coin trading. According to DeFiLlama’s data, the on-chain trading volume currently stands at approximately $200 million. This heightened activity has not only increased the value locked (TVL) on Sui but also set a new record high of $1.13 billion, which is a notable milestone for the blockchain.

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2024-10-15 07:44