Sui Foundation Addresses $400M Token Selling Allegations Amid SUI Price Surge

The Sui blockchain’s native token SUI has seen an impressive 104% price rally over the past month. However, recent reports of alleged insider selling by the Sui Foundation have cast a shadow over this momentum. The Foundation has now responded to clear the air, even as SUI prices dropped 2% against the broader crypto market uptrend.

Crypto analyst @lightcrypto recently claimed on X (formerly Twitter) that wallets linked to the Sui Foundation had sold over $400 million worth of SUI tokens during the recent price surge. The analyst pointed to an address (0xbe90…950aa8) that redeemed more than 82.6 million SUI tokens (valued around $184 million) from a stake account since late June. These tokens were then transferred in small, frequent transactions to major exchanges like OKX, Binance, and Bybit.

The Sui Foundation has firmly denied these allegations. In an official statement, they declared:

“No insiders, neither 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. Insiders have not been involved in any preemptive selling or violation of lockups and the circulating supply schedule”.

The Foundation suggested that @lightcrypto may have been referring to Sui’s infrastructure partners, who hold tokens in accordance with agreed lock-up periods.

SUI Price Outlook

Despite hitting an all-time high of $2.34 earlier this week, the recent controversy has introduced some selling pressure on SUI. Crypto analyst Ali Martinez has cautioned investors about opening new SUI positions, citing the TD Sequential indicator on weekly charts that has accurately predicted previous price movements.

The Sui blockchain has seen a surge in network activity, driven largely by meme coin trading. On-chain trading volume has reached approximately $200 million, according to DeFiLlama. This increased activity has pushed Sui’s total value locked (TVL) to a record $1.13 billion, marking a significant milestone for the blockchain platform.

As the situation develops, investors and Sui community members will be closely watching both the Foundation’s actions and SUI’s price performance in the coming days and weeks.