Recent rumors about the Sui Foundation allegedly selling over $400 million worth of its native SUI tokens have caused quite a stir, particularly during a period when the token price surged by 104%. The Foundation has issued an official statement denying these claims, but despite the overall market growth, SUI’s price has dipped by 2%.
Details of the Sale Allegations
Crypto analyst @lightcrypto has alleged that wallets connected to the Sui Foundation have been selling SUI tokens worth $400 million over the past few months. The analyst claims that one specific address withdrew 82.6 million SUI tokens, valued at approximately $184 million, from a staking account starting in late June. These tokens were reportedly transferred to major exchanges like OKX, Binance, and Bybit in small, frequent transactions. It is believed that the staked SUI tokens were connected to an address associated with the Sui Foundation.
Sui Foundation’s Official Response
In response to these accusations, the Sui Foundation took to social media platform X to firmly reject the claims. The statement read:
“There has been no insider selling by the Foundation, Mysten Labs employees, or investors. All sales have adhered to the planned token circulation schedule, and no violations of pre-set rules have occurred.”
Additionally, the Foundation clarified that the specific address mentioned by Lightcrypto does not belong to the Foundation or its members. They suggested that the transactions could be linked to infrastructure partners holding tokens whose lock-up periods have expired.
Current SUI Price and Future Outlook
SUI, the native token of the Layer-1 Sui blockchain, which aims for global adoption, hit a peak of $2.34 on Monday before coming under selling pressure from investors following the news.
Crypto analyst Ali Martinez has cautioned investors about taking new positions in SUI, citing the TD Sequential indicator, which flashed a sell signal on the weekly chart. Analysts are warning of a potential 43% price correction.
On the other hand, the Sui blockchain has shown strong network activity, driven by the rising interest in meme coin trading. According to DeFiLlama, on-chain trading volume has reached around $200 million, and Sui’s Total Value Locked (TVL) has hit $1.13 billion, marking a significant milestone for the network.
Market Impact and Long-Term Outlook
The Sui Foundation’s statement has resonated within the crypto community, helping to alleviate some uncertainty. While the Foundation has denied any insider sales, investors remain cautious.
With its robust infrastructure and growing network activity, Sui shows solid long-term potential. However, market dynamics and ongoing rumors may continue to affect SUI’s price in the near future. Investors are advised to closely monitor developments and stay informed of market movements.
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Sui Foundation, SUI token, crypto market, insider sales, blockchain
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