Sui Token Faces Insider Selling Allegations Amid Price Surge

According to Cointelegraph, the Sui (SUI) token has experienced a significant rally, rising over 120% in the past month to trade at $2.25 as of 10:13 am UTC on Oct. 14. Despite this impressive price gain, allegations of insider selling have emerged among cryptocurrency investors. Pseudonymous crypto analyst Light reported on X that wallets associated with the SUI initial coin offering (ICO) have sold more than $400 million worth of tokens during the rally. Light noted that insiders, including a large foundation wallet, have been selling substantial amounts of tokens at lower prices and have accelerated their selling at higher levels. This large-scale selling by insiders can exert downward pressure on the token's price. Further selling pressure may be on the horizon for the Sui token. On Oct. 23, $114 million worth of Sui tokens, equivalent to 2.32% of the circulating supply, are set to be unlocked. According to Token Unlocks data, more than 28% of the total SUI token supply is currently unlocked. Of the total supply, 14% was allocated to investors, 10% to the Mysten Labs Treasury, and 50% to community reserves, as per Coincarp data. The ongoing selling by insiders raises concerns for new investors. Light emphasized that the continuous unloading of tokens by those building the ecosystem, who arguably know the token's value best, does not bode well for less informed buyers chasing momentum. Despite these concerns, the SUI token is currently up over 164% year-to-date. Some analysts believe that the Sui Network could become a strong competitor to Solana and emerge as a leading Layer-1 blockchain, according to crypto research firm K33.