Recent allegations have surfaced claiming that the Sui Foundation offloaded over $400 million in local tokens while the SUI token value experienced a remarkable increase of 104%. The foundation has firmly denied these claims, asserting that the rumors are unfounded. Despite the overall market gaining, SUI’s price fell by 2%.
What Are the Details of the Allegations?
A well-known crypto analyst, @lightcrypto, suggested that wallets linked to the Sui Foundation executed sales of $400 million worth of SUI tokens in recent months. They highlighted that a specific wallet withdrew $184 million corresponding to 82.6 million SUI tokens from a staking account since late June. Small, frequent transactions moved these tokens to major exchanges, including Binance and Bybit. The claim regarding the origin of these staked tokens being from a Sui Foundation wallet raised significant concerns.
How Did Sui Foundation Respond?
In response, the Sui Foundation issued a statement on social media, emphasizing that no insider sales by Mysten Labs employees or investors took place. The foundation explained that all sales adhered to an established circulating supply framework, without breaching any guidelines.
Additionally, the foundation clarified that the wallet referenced by the analyst does not belong to its members. This suggests that the transactions in question may relate to tokens held by infrastructure partners that had completed their lock-up phase.
What is the Current Situation of the SUI Token?
SUI, the native token of the Layer-1 Sui blockchain, is striving for widespread adoption. Although SUI reached a peak of $2.34 recently, selling pressure from ongoing rumors is affecting investor sentiment. Caution is advised for those considering new positions, as analysts warn of a potential 43% price correction based on the TD Sequential indicator.
- The Sui blockchain is witnessing strong network activity.
- Meme coin trading is attracting increased interest, with on-chain trading volumes around $200 million.
- Sui’s total value locked (TVL) has climbed to $1.13 billion, highlighting a significant network milestone.
The Sui Foundation’s statement has created ripples in the cryptocurrency community. While the denial of insider sales has eased some concerns, investor caution remains prevalent. The infrastructure’s resilience and rising network activity suggest promising long-term prospects for the token, even as market rumors and dynamics pose ongoing challenges. Investors should remain vigilant and analyze the environment closely as developments unfold.