Sui Foundation Disputes Allegations of $400M SUI Token Sale by Insiders Amid Price Surge
SUI
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The Sui Foundation has dismissed claims that insiders sold $400 million worth of SUI tokens during the recent price surge of the cryptocurrency.
The foundation responded to rumors that accused employees, investors, and other stakeholders of offloading significant amounts of SUI tokens during a recent rally in its value.
In a post on X, the Sui Foundation stated, “No insiders, including employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors, have sold $400M worth of tokens during this period, either individually or combined.”
The foundation emphasized that insiders did not engage in any preemptive selling or violate lockup agreements, and the circulating supply schedule remains unaffected.
The foundation pointed to an infrastructure partner as the likely source of the token sales. The partner’s tokens are subject to a vesting schedule, and the Sui Foundation assured that all token lockups are enforced by qualified custodians. The foundation also confirmed that the partner is in compliance with these requirements.
Over the past 30 days, SUI’s price has surged by more than 108%, reaching an all-time high of $2.35 on October 13. With a market cap of approximately $6.18 billion, SUI currently ranks as the 21st-largest cryptocurrency.
The allegations initially arose when a pseudonymous crypto analyst named Lightcrypto claimed that insiders had sold $400 million worth of SUI tokens during the rally. Lightcrypto alleged that wallets associated with the Sui Foundation had been distributing substantial amounts of tokens, citing data that indicated increased activity from wallets involved in SUI’s initial coin offering in 2023.
Adeniyi Abiodun, co-founder of Mysten Labs, attributed the surge in SUI’s value to the growing number of web3 projects migrating to the Sui blockchain, particularly in the gaming sector. He explained that scalability issues on other networks had led developers to choose Sui, where they found better performance and lower costs, contributing to the platform’s increasing popularity.
In other news, Circle CEO Jeremy Allaire recently announced that the company plans to launch its USDC stablecoin on the Sui network. Sui, which was launched in 2023, is an L1 blockchain that focuses on simplifying decentralized application development through parallel transaction execution. It offers advanced scalability and security for decentralized finance (DeFi) solutions and is built using the Move programming language.
Additionally, Mysten Labs announced earlier its plans to release its handheld gaming device, SuiPlay0X1, in the first half of 2025. The company started accepting preorders for the device, priced at $599, on September 3. The SuiPlay0X1 will support both traditional PC games and titles built on the Sui blockchain, marking a significant step in integrating blockchain technology into the gaming industry.
