Recently, claims have emerged suggesting that the Sui Foundation sold over $400 million worth of local tokens during a period when the SUI token price surged by 104%. The foundation officially denied these allegations, refuting the rumors. Despite the overall increase in the market, the price of SUI experienced a 2% decline.
Details of the Sale Claims
Crypto analyst @lightcrypto claimed that wallets associated with the Sui Foundation sold $400 million worth of SUI tokens in recent months. The analyst noted that a specific address withdrew approximately $184 million worth of 82.6 million SUI tokens from a staking account since the end of June. These transactions were made frequently and in small amounts, transferring tokens to major exchanges like OKX, Binance, and Bybit. The assertion that the staked SUI tokens originated from an address belonging to the Sui Foundation raised eyebrows.
Sui Foundation’s Statement
The foundation refuted these claims through a statement on the social media platform X. The statement included remarks indicating that no insider sales occurred by employees or investors of Mysten Labs. Sales were conducted in accordance with the planned circulating supply, with no violation of predefined rules.
Additionally, it was specified that the particular address mentioned by the analyst does not belong to the foundation or its members. The statement suggested that the transactions referred to by Light Crypto may pertain to tokens held by Sui’s infrastructure partners that had completed their lock-up period.
Current Status of SUI Price and Future Expectations
SUI serves as the native token for the Layer-1 Sui blockchain platform, which aims for global adoption. SUI peaked at $2.34 on Monday, but the recent developments have exerted selling pressure on investors.
Crypto analyst Ali Martinez advised caution for investors opening new SUI positions. Martinez noted that the TD Sequential indicator signaled a sell on the weekly chart, with analysts warning that prices could experience a 43% pullback.
Moreover, the Sui blockchain demonstrated robust network activity alongside increased interest in meme coin trading. According to DeFiLlama data, the trading volume on-chain has reached approximately $200 million. With this growing interest, Sui’s total value locked (TVL) rose to $1.13 billion, marking a significant milestone for the network.
Market Impact and Long-Term Outlook
The Sui Foundation’s statement resonated widely within the crypto community. While the foundation’s denial of any insider sales has somewhat alleviated uncertainties, investors continue to exhibit caution. The underlying strength of Sui’s infrastructure and increasing network activity indicate that the token possesses solid long-term potential. However, market dynamics and ongoing rumors may continue to influence SUI’s price in the coming days, necessitating that investors closely monitor developments and analyze the market carefully.
