The SUI token has drawn charges of insider selling given its remarkable rises after a notable price spike of over 120% in the previous month. As of October 14, the coin traded at $2.25; merely last week witnessed a 16% increase.
Major insider selling claims have emerged even with the rising price trend. Light, a crypto analyst, says during this recent surge wallets connected to the SUI initial coin offering (ICO) had offloaded more than $400 million in tokens. Light noticed that these insiders—probably including a large foundation wallet—have been selling off tokens since before the rise and are now increasing sales at higher price points.
Especially in situations when insiders hold a large portion of the circulating supply, token sales by insiders can drastically reduce the price of a cryptocurrency.
Repeating these assertions, the Sui Foundation released a statement on October 14 denouncing any involvement in insider trading. They underlined that neither premeditated sales nor lock-down policies have been violated. The Sui Foundation assured under ongoing inspection that qualified custodians manage all token lockdowns and indicated that an infrastructure partner handling tokens under a lockdown schedule may handle the sale.
Although the SUI token has increased over 164%, this year, potential investors are concerned about the great selling activity. Light expressed concerns, noting that frequently less informed about the true value of the asset, insiders dump tokens onto average investors suffer bad consequences. Recent success of the SUI cryptocurrency has sparked discussions about its capacity to rival current systems like Solana, with some experts believing it may emerge as a robust layer-1 blockchain.
