New York, Saturday, October 19, 2024 – The Sui Foundation has firmly denied allegations that insiders sold $400 million worth of Sui tokens during the token’s recent price surge.
The non-profit organization, which supports the Sui blockchain, responded to claims circulating on social media by stating that no employees or investors from the Foundation, Mysten Labs, or its contributors engaged in any such sales.
The allegations originated from a pseudonymous crypto analyst known as Lightcrypto, who claimed that insiders took advantage of the recent price surge to sell tokens on the open market.
However, Sui Foundation clarified that the wallet involved in the sale likely belongs to an infrastructure partner that holds tokens under a lockup schedule. According to the Foundation, the partner complies with all token lockup agreements, which are monitored by qualified custodians.
In a statement, the Sui Foundation reassured investors that “no insider sales” were involved during the token’s recent price rally. The Foundation further emphasized that this infrastructure partner’s activities were in line with the token’s lockup rules and that no capital gains were realized through these sales.
The Sui token has surged by nearly 100% over the past month, including a 19% rise in the past week, with prices reaching $2.22. Despite this, some investors remain wary of potential insider involvement in the token’s movements.
While Sui Foundation continues to maintain its stance on transparency, the accusations have sparked renewed debate about the accountability and ethics of blockchain developers and infrastructure providers.
The allegations come amidst a significant surge in Sui token value, further spotlighting transparency issues within the crypto market. The Sui blockchain is supported by Mysten Labs and has quickly gained attention as a promising Layer 1 protocol.
