SUI, the native token of the Sui Network, has recently hit a significant milestone, surpassing 6 billion transactions. Currently trading at $2.05, SUI has seen a 4.59% increase in the last 7 days.
Its market capitalization stands at $5.66 billion, reflecting a modest 0.59% growth, though its 24-hour trading volume has dropped by more than 30%, signalling reduced short-term activity. Despite these market fluctuations, SUI remains in the spotlight following a price surge of over 120% in the past month.
Allegations of Insider Selling During Rally Amid SUI Price Surge
Amid SUI’s impressive rise, concerns about potential insider selling have surfaced. As of October 14, SUI was trading at $2.25, up more than 8% in the last week alone.
Crypto analyst Light revealed on social media platform X(Twitter) that wallets linked to Sui’s Initial Coin Offering (ICO) allegedly sold over $400 million worth of tokens during the recent price rally.
The timing of these sales, as prices escalated, raised suspicions that insiders might be cashing out during the upward momentum, possibly undermining market confidence.
To the accusations, the Sui Foundation denied any misconduct. They made it clear that insiders had not broken any lockup agreements meant to preserve the token’s integrity or engaged in preemptive sales.
The foundation guessed that rather than coming from members of the internal team, the sales may have come from an infrastructure partner. They claim that their partner is adhering to lockup schedules that are enforced by certified custodians, guaranteeing that all terms and agreements are met.
The foundation did not specify any individuals involved but indicated that the wallet in question could belong to an “infrastructure partner,” and not insiders as originally suspected.
SUI’s Future Look
In the future, Sui might come under increased pressure to sell. Sui tokens valued at about $114 million, or 2.32% of the total amount in circulation, are scheduled to be released on October 23. At this point, more than 28% of the SUI’s total supply has been unlocked.
Nevertheless, SUI continues to do well in the market despite the ongoing news surrounding insider selling. Its’ remarkable growth and transactional milestones set it apart from other cryptocurrencies. However, as SUI becomes more established in the market, the issues brought up emphasise how crucial transparency becomes.
Also read: Sui Reaches $900M TVL Milestone As SUI Token Surges In Value