By The Sui token has experienced a dramatic rise, with its value soaring by over 120% in the last month and currently trading at $2.17 as of October 15.
This impressive surge has sparked growing interest from investors but has also raised concerns about potential insider selling.
Reports suggest that wallets linked to the token’s initial coin offering (ICO) may have sold more than $400 million worth of Sui tokens during this recent rally, fueling debate over the token’s prospects.
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…
3.1K
Reply
Copy link
$400M in token sales linked to Sui wallets
The surge in Sui’s price has not come without controversy.
Allegations of insider selling have emerged, with pseudonymous crypto analyst Light revealing on X that wallets associated with the Sui Foundation sold over $400 million in tokens during the rally.
These wallets reportedly accelerated their sales as the token’s value increased, raising concerns about their impact on the market and new investors.
When insiders hold a large percentage of a cryptocurrency’s supply, their actions can significantly influence price movements.
Large-scale sell-offs can create downward pressure on the token, leaving new and less-informed retail investors vulnerable.
Light warned that such insider activities could lead to grim outcomes, particularly when momentum-driven retail investors are involved.
Sui’s defense
In response to the insider selling accusations, Sui issued a statement denying any wrongdoing.
The organization stated that the selling activity linked to the wallets was not a result of preemptive insider trading, nor had there been any violation of lockup agreements.
Following 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,…
1.7K
Reply
Copy link
According to Sui, the sales in question may have originated from an infrastructure partner operating within compliance with the lockup schedules enforced by custodians.
Despite Sui’s attempts to downplay the allegations, the timing of the token sales has led to speculation about the level of control insiders have over the circulating supply and the potential implications for retail investors.
Sui’s future performance will be closely monitored, especially with upcoming token unlocks that may contribute to increased selling pressure.
Sui faces a potential hurdle on October 23
Looking ahead, Sui faces a potential hurdle on October 23, when approximately $114 million worth of Sui tokens are scheduled to be unlocked.
This figure represents 2.32% of the circulating supply, which could add to the existing selling pressure.
Currently, over 28% of the total SUI supply is already unlocked, and the upcoming release may increase market volatility.
Historically, token unlock events can lead to price drops as more tokens flood the market, particularly when concerns about insider sales are present.
Investors are likely to keep a close eye on the market as the unlock date approaches, especially given the recent allegations of insider selling.
Sui Up 164% YTD
Despite the controversy surrounding the token, Sui has had an impressive year, gaining more than 164% year-to-date.
Some analysts believe that the token could even challenge Solana as a leading layer-1 blockchain, especially if it continues to attract developer interest and investor confidence.
However, with concerns about insider selling and potential upcoming market volatility, the token’s future remains uncertain.
While some analysts are optimistic about Sui’s potential to rival other major blockchains, the impact of large-scale selling and the upcoming token unlock could affect its momentum.
For now, the Sui token’s rally continues to capture the attention of both investors and critics, as its performance in the coming months will likely determine whether it can maintain its upward trajectory or succumb to selling pressures.
The post Sui denies insider selling allegations as token surge triggers $400M sell-off appeared first on Invezz
