The organization behind the SUI cryptocurrency, Sui Foundation, has denied allegations that insiders or employees of the company, as well as Mysten Labs, sold $400 million worth of tokens during the recent price surge. These rumors surfaced after a sharp increase in the value of SUI, drawing attention to the activity of large wallets associated with the project.
“Not a single insider, employee of the foundation, employee of Mysten Labs (including the founders), or ML investors sold tokens worth $400 million during this period, either individually or collectively. Insiders did not participate in any preemptive sales or in violating lock-up or circulation rules,” the official statement from the foundation said.
The Sui Foundation also added that the transactions could have been carried out by their infrastructure partner but ruled out any violation of the token unlock schedule. Representatives emphasized that all internal activities of the company are strictly monitored, and any breaches of the circulating supply policy are unacceptable.
The accusations against the insiders arose after a post by a user named light on X. In his post, he claimed that $400 million worth of tokens were moved from wallets linked to the initial distribution of SUI. He also expressed concern that those closest to the project, who are most informed about its true value, might have been offloading tokens during the price surge, which could negatively impact the trust in the project.
“[…] It’s disheartening that the people who built this ecosystem, and who probably understand the value of this token better than anyone, are dumping hundreds of millions of dollars’ worth of tokens on less informed buyers chasing momentum. This raises concerns about the long-term sustainability of the project,” wrote light, hinting at potential dissatisfaction within the community.
Since the beginning of August, the price of SUI has risen by 400%, attracting attention from both retail investors and major players. Recently, the token reached its all-time high, fueling a wave of speculation.
Additionally, Mysten Labs, a key company associated with the Sui blockchain, announced the start of testing new technologies, such as the use of mobile networks and radio waves for conducting offline cryptocurrency transactions. This innovation could significantly expand the use cases for SUI and increase its appeal to users, which may have also contributed to the recent surge in the token’s price.
