Rumors have been swirling that insiders behind the Sui blockchain, a competitor to Solana, have been dumping millions of dollars worth of SUI tokens.
A crypto analyst known as Light pointed to a graph showing large transfers of SUI from an ICO wallet, claiming that insiders were cashing out. “It’s not reassuring to see the people building this ecosystem, who arguably know the value of this token best, unloading hundreds of millions of dollars,” Light said. “It usually ends badly for regular investors.”
However, the Sui Foundation, which oversees the blockchain, denied the allegations. They said that the sell-off came from an “infrastructure partner,” not an “insider.”
The Foundation clarified:
- No employees of the Foundation or Mysten Labs (the development firm behind Sui) have sold any SUI tokens.
This includes the founders and investors.
- The infrastructure partner owns tokens under a lockup schedule, meaning they are subject to specific restrictions on when they can be sold. These lockups are enforced by custodians and monitored by the Sui Foundation.
SUI is currently trading at $2.02, down over 10% in the past 24 hours. The cryptocurrency is ranked 25th by market capitalization.
While the Foundation denies insider selling, the allegations have raised concerns about the project’s future.
Investors will be watching closely to see how the situation unfolds. /p>
