The Sui Foundation is under scrutiny following reports of insider sales involving over $400 million worth of SUI tokens. These allegations surface amidst a remarkable 104% rally in SUI’s price over the past month. Although the foundation has denied the accusations, the controversy has cast a shadow on the altcoin’s bullish momentum, leading to a 2% dip despite the broader market’s upswing.
Analyst Exposes Alleged Insider Selling
Prominent crypto analyst @lightcrypto took to X (formerly Twitter) to accuse the Sui Foundation of offloading tokens during the price rally. According to the analyst, wallets linked to the foundation offloaded over 82.6 million SUI tokens—valued at approximately $184 million—from a staking account since late June.
The analyst identified an address, 0xbe90…950aa8, as the primary one redeeming tokens from a stake account (0x7f3b…3239e4). These tokens were allegedly transferred in small, high-frequency transactions to top exchanges like OKX, Binance, and Bybit. Further investigation revealed that the stake account’s tokens originated from the Sui Foundation’s address (0x341f…17fae1).
In response, the Sui Foundation denied any wrongdoing, clarifying in a post on X that no insiders, employees, or foundation members had sold tokens. Instead, it suggested that @lightcrypto might have been referring to infrastructure partners—entities that hold SUI tokens under lock-up agreements.
SUI Token Faces Headwinds Despite Recent Gains
SUI, the native token of the Layer-1 Sui blockchain, has had an impressive run, reaching an all-time high of $2.34 on Monday. However, the insider selling controversy has caused uncertainty, triggering a mild 2% dip in the token’s price.
Adding to the concerns, crypto analyst Ali Martinez has issued a cautionary note, urging investors to avoid building new positions. Martinez cited the TD Sequential indicator, which has historically tracked SUI’s movements accurately, now signaling a potential sell-off. Some analysts predict that SUI could drop 43% in the coming days.
Also Read: Sui’s DeFi Growth Fuels Bullish Outlook – Can it Break the $2.5 Barrier?
Network Growth Amid Meme Coin Trading Boom
Despite the market turbulence, Sui’s blockchain has seen impressive growth, driven largely by the meme coin frenzy. On-chain data from DeFiLlama shows that trading volume has surged to $200 million, with the blockchain’s Total Value Locked (TVL) hitting a record $1.13 billion.
The recent surge in activity has bolstered the Sui ecosystem, but the insider selling controversy poses a risk to investor confidence. How Sui navigates these allegations could significantly shape its price trajectory and long-term outlook.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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