SUI Price Plummets as Sui Foundation Faces $400M Insider Selling Accusations

• Sui Foundation has found itself at the center of controversy, denying allegations of substantial insider token sales worth $400 million.
• The foundation has witnessed a significant ascent in network activity propelled by the growing popularity of investor trading.

Sui, the layer-one blockchain offering industry-leading performance and infinite horizontal scaling, has made headlines due to allegations of $400 million in insider token sales. The accusations come from an on-chain analyst @lightcrypto who raised some worries about a potential massive insider token dump. 

Clarification Released on $400M Token Sale Claims

The SUI foundation has vehemently denied these accusations made by the on-chain sleuth on X.  In defence, the Foundation made it clear that no insiders, including its own staff, Mysten Labs employees, or Mysten Labs investors, had sold $400 million worth of tokens during the recent vertical ascent of SUI. The Foundation reassured the public that no one had engaged in early token sales or violated the agreed-upon lockup periods or circulating supply rules.

Additionally, the foundation unequivocally stated that all stakeholders have fully adhered to the established lockup schedules and token circulation policies. They further clarified that these accusations were unfounded and that the wallet in question likely belonged to an infrastructure partner whose tokens are securely held under lockup and not available for sale.

The analyst further added that the situation where insiders sell tokens to retail investors inevitably leads to a negative outcome. He expressed concern that it is troubling when the very individuals building the ecosystem who likely have the best understanding of the token’s true value are selling off hundreds of millions of dollars worth of tokens to less informed buyers who are simply chasing market momentum

SUI Achieves New Heights

This clarification comes as SUI, the native cryptocurrency of the blockchain, set a new all-time high of $2.34 on October 13, 2024. Another noteworthy advancement is the recent introduction of native USDC on the SUI network. This launch paves the way for the development of a broader range of financial products within the DeFi sector, allowing users to access digital dollar savings without relying on traditional banking systems.

While USDC is now natively integrated, there is no need for bridging solutions such as Wormhole, which previously facilitated seamless cross-chain transactions.

These trends indicate that Sui is positioning itself as a strong competitor to established platforms like Solana. The network’s capacity to attract such high levels of activity and investment reflects growing confidence among users and investors in its long-term potential. As of now, the SUI token is trading at $2.23, just 4.30% shy of its all-time high of $2.34.