On-Chain Sleuth Highlights Possible Insider Trading Activity in Sui
The Sui Foundation has firmly denied allegations of insider token sales totaling $400 million, following SUI’s recent all-time high.
The claims were initially raised by on-chain analyst Light, who questioned the legitimacy of SUI's price surge.
Light pointed out that despite trading at a quarter of Solana's valuation, SUI's potential remains unclear.
The analyst also flagged suspicious activity involving a large foundation wallet, which allegedly sold $400 million in tokens during the surge.
Since late June, an address, 0xbe90...950aa8, reportedly redeemed over 82.6 million SUI tokens (around $184 million) from stake account 0x7f3b...3239e4, transferring them in small, frequent transactions to major exchanges like OKX, Binance, and Bybit.
Light further highlighted that the SUI tokens in question trace back to the Sui Foundation’s wallet, 0x341f...17fae1, raising concerns about the foundation's role in the transactions.
Sui Foundation Refutes Allegations
In response to the recent allegations, the Sui Foundation firmly stated that no insiders, including employees of the Foundation, Mysten Labs, or Mysten Labs investors, have sold $400 million worth of tokens during the recent price surge.
The Foundation clarified that the on-chain analyst, Light Crypto, did not provide specific addresses or evidence implicating foundation members or insiders in token sales.
Instead, they suggested that Light may have been referring to Sui’s infrastructure partners, who are subject to token lock-up agreements.
The Sui Foundation emphasized that all lock-ups are enforced by qualified custodians and closely monitored to ensure compliance with the agreed terms.
SUI Hits ATH But Has Since Dropped
As SUI reached a new all-time high of $2.35 on 13 October 2024, its impressive 100% surge over the past 30 days has sparked both excitement and debate within the cryptocurrency community.
Despite reassurances from the Sui Foundation, concerns remain.
Analyst Light questioned whether SUI's current market capitalisation reflects its actual potential.
While SUI has posted significant gains, the token has recently dipped 1.26% in the last 24 hours, now trading at $2.23, according to CoinMarketCap.
The ongoing discussion underscores lingering scepticism about the sustainability of SUI's growth.
Community Casts Doubts Over Project's Long-Term Outlook
Questions have arisen about whether SUI's high valuation is truly warranted, particularly in comparison to competitors like Solana.
Speculation around insider cash-outs has fuelled concerns about the project's long-term viability.
Multicoin Capital's managing partner, Kyle Samani, noted the ambiguity in Sui Foundation's denial in a post on X (formerly known as Twitter).
Others have echoed this scepticism, highlighting the unclear distinction between an infrastructure partner and an insider, further deepening doubts surrounding the project.