The Sui Foundation has denied allegations of insider selling following a recent price surge of the SUI token. On Monday, the non-profit organization behind the Sui blockchain refuted claims that employees or investors offloaded $400 million worth of tokens during the rally.
“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,” the Sui Foundation said in a statement.
Allegations from Pseudonymous Analyst
The allegations originated from crypto analyst Lightcrypto on X (formerly Twitter), who accused insiders of liquidating SUI tokens during the rally. Lightcrypto’s analysis linked the wallets responsible for these sales to the Sui initial coin offering (ICO), though no specific wallet addresses were disclosed.
“It does not bring comfort that the people building this ecosystem those who arguably know this token’s value best are unloading hundreds of millions of dollars into less informed buyers chasing momentum,” Lightcrypto tweeted, casting doubts on the token’s valuation and the blockchain’s performance.
Token Price Surge
SUI’s price has experienced significant growth, climbing 100% over the past month and 19% in the last week. According to The Block’s SUI price page, the token is currently trading at $2.22, though it has slipped 0.17% over the last 24 hours.
Sui Foundation Clarifies Partner Activity
The Sui Foundation suggested that the wallet in question belonged to an infrastructure partner that holds tokens under a lock-up schedule. “All token lockups are enforced by qualified custodians and continuously monitored by the Sui Foundation, and this partner is in compliance,” the foundation added.
Despite the clarifications, the foundation did not disclose the identity of the partner and has not responded to further requests for comment.
This incident comes as the SUI token continues to draw attention amid market volatility, raising questions about the ecosystem’s governance and transparency.
