SUI Foundation and Alleged Insider Selling (Patreon)

The Sui Foundation has addressed allegations circulating on social media about insider selling of $400 million worth of Sui tokens during a recent price surge. Here’s a detailed explanation of the situation:

Allegations and Rebuttal

• Allegations of Insider Selling:

  • A pseudonymous crypto analyst named Lightcrypto raised concerns about wallets linked to the Sui initial coin offering (ICO) being involved in insider selling. However, no specific wallet addresses were disclosed.

• Sui Foundation's Response:

  • The foundation clarified that the wallet suspected of selling tokens belongs to an "infrastructure partner" who is under a lock-up schedule.

  • They emphasized that all token lockups are managed by qualified custodians and are continuously monitored for compliance.

• Concerns Raised:

  • Lightcrypto expressed concern that those involved in building the Sui ecosystem might be offloading large amounts of tokens to less informed buyers, potentially exploiting market momentum.

• Denial of Insider Selling:

  • The Sui Foundation firmly denied any insider selling by its employees, Mysten Labs (a developer associated with Sui), or their investors. They stated that no $400 million worth of tokens were sold by these parties during the period in question.

Market Impact

• Sui Token Surge:

  • Despite the allegations, the value of Sui tokens is holding up ok and rem it surged approximately 100% over the past month.

I still hold it. About 2% of my SOL bag in size.