- Sui denies insider sales, attributing a $400M token sell-off to an infrastructure partner.
- $114M worth of SUI tokens will unlock on October 23, raising concerns about market pressure.
- SUI surges 108% monthly, reaching $2.35 amid growing adoption in gaming and web3 projects.
The Sui Foundation has denied accusations that insiders sold $400 million worth of SUI tokens during a recent price surge. Rumors claimed employees, investors, and Mysten Labs partners offloaded significant tokens as the value of SUI rose. The foundation insisted that no insider had sold tokens prematurely or violated lockup agreements.
The SUI token experienced a 108% increase in value over the past month, reaching a peak of $2.35 on October 13. Accusations were brought by a crypto analyst, Lightcrypto, who suggested that wallets linked to the foundation sold substantial tokens during the rally.
Infrastructure Partner Implicated in Token Sales
In response, the foundation pointed to an infrastructure partner as the likely source of the token sales. It clarified that the partner’s tokens are subject to a strict vesting schedule, with lockups managed by custodians to ensure compliance. The foundation reiterated that neither employees nor Mysten Labs associates were involved in these transactions.
According to the foundation, the infrastructure partner fully complies with the lockup terms, and the sales did not breach any agreements. The foundation emphasized that all circulating supply schedules remain intact.
Upcoming Token Unlock May Add Pressure
The market could face pressure as SUI continues its strong performance with the scheduled new token unlocks. On October 23, $114 million worth of SUI tokens, 2.32% of the circulating supply, will be unlocked. With over 28% of the token supply already unlocked, analysts warn that further selling activity could emerge.
Increased token supply may cause volatility if holders sell during this bullish phase. Investors remain cautious, anticipating potential price swings ahead of the unlock date.
SUI Maintains Strong Performance Amid Accusations
Despite these allegations, the SUI token’s momentum has stayed intact, with its price currently at $2.23. The blockchain has seen increased adoption, driven by the migration of web3 projects, especially in gaming, seeking better scalability and lower transaction fees.
Sui has also been compared to Solana due to its rise in on-chain activity. The network has seen notable growth this year, attracting users and developers and solidifying its position as a promising layer-1 blockchain.
The Sui Foundation continues to deny any insider sales, attributing the transactions to a compliant infrastructure partner. All eyes are now on the upcoming token unlock, which could impact market dynamics in the coming weeks.
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