Sui Foundation Responds to Accusations of Token Sell-Off
The Sui Foundation has responded to accusations that insiders dumped as much as $400 million worth of SUI tokens during the recent surge in the cryptocurrency. That comes on the back of rumors spreading through social media that several employees and investors have been dumping huge quantities of them tokens amid a remarkable price rally.
In a statement over X, the foundation said, “No insiders, either employees of the Foundation or Mysten Labs, nor their investors have sold $400M worth of tokens during this period, either individually or combined”.
Infrastructure Partner Named as Suspected Seller
The foundation attributed this to an infrastructure partner who might have been the likely seller of the them token. The partner had his tokens under a vesting agreement with lockups enforced by qualified custodians. According to this confirmation, the Sui Foundation confirmed this infrastructural partner has complied with all requirements.
SUI Price Surges Amid Growing Interest
SUI saw its price jump over 108% in the past 30 days, having once again set an all-time high of $2.35 on October 13. With the latest available data, SUI has a market capitalization of roughly $6.18 billion, placing it as the 21st-largest cryptocurrency by market capitalization.
Accusations from Crypto Analyst
The accusations started when a crypto analyst, Lightcrypto accused insiders of dumping $400 million worth of SUI tokens. He cited data from the blockchain, which insinuated wallets that had participated in SUI’s 2023 initial coin offering had been becoming quite active.
Web3 Growth on Sui Blockchain
Mysten Labs’ co-founder, Adeniyi Abiodun, attributed the recent increase in price due to an increasing number of web3 projects-mostly gaming-that are beginning to migrate to the Sui blockchain. According to Abiodun, scalability issues on other networks have forced developers to Sui for scalability and therefore lower costs.
USDC Launch and SuiPlay0X1
Along with that price increase, Circle has also just announced that it will be launching its stablecoin, USD Coin, on Sui. Sui-which launched this year-is a Layer 1 blockchain whose mission is making decentralized application development easier to create.
Mysten Labs also announced SuiPlay0X1, a handheld game player to be available in 2025, which will support traditional PC gaming and blockchain gaming. Preorders open this month at $599.
