The recent surge of the Sui token has led to allegations of insider selling, as wallets linked to its initial coin offering (ICO) reportedly sold over $400 million worth of tokens during the price rally. As of October 14, Sui has risen more than 120% in the past month, trading at $2.25 and up over 8% in just the last week.
Despite this impressive price gain, concerns about significant insider selling have emerged. Crypto analyst Light revealed on X that wallets linked to the Sui Foundation sold $400 million in tokens during the rally, with insiders accelerating their sales as prices increased.
When insiders control a large portion of a cryptocurrency’s supply, their selling can heavily influence the token’s price. Large-scale sales often create downward pressure, which can be troubling for new investors.
In response to the allegations, Sui released a statement denying any wrongdoing. They emphasized that insiders have not engaged in preemptive selling or violated any lockup agreements.
Instead, they suggested that the sales might have come from an infrastructure partner who is in compliance with lockup schedules enforced by qualified custodians.
Looking ahead, Sui may experience more selling pressure. On October 23, approximately $114 million worth of Sui tokens, or 2.32% of the circulating supply, is set to be unlocked. Currently, over 28% of the total SUI supply is already unlocked.
While Sui’s rally has been remarkable, the insider selling raises concerns for potential investors. Light warned that such selling often leads to a grim outcome for tokens, particularly when insiders sell to less informed retail investors chasing momentum.
Despite these concerns, the Sui token is up over 164% year-to-date, and some analysts believe it could rival Solana as a leading layer-1 blockchain.
Also Read: SUI Price Surges 111% in 30 Days, Reaches Six-Month High
