The Sui project team, which is seen as a competitor to Solana (SOL), is addressing allegations that insiders have liquidated $400 million in SUI tokens.
On Sunday, the anonymous crypto analyst known as Light asserted that insiders of the layer-1 altcoin were offloading their tokens, referencing a chart showing the distribution of SUI ICO wallets.
“It is concerning that those building this ecosystem, who arguably understand the token’s value the best, are selling off hundreds of millions worth of tokens to less informed investors pursuing momentum. As some of us have observed, whether it’s now or later, in many of these scenarios where retail investors buy from insiders, there’s often only one conclusion.”
In contrast, the Sui Foundation clarified that the sell-off was attributed to an “infrastructure partner,” and not an “insider.”
“1. No insiders, including employees of the Foundation or Mysten Labs (which includes the founders of Mysten Labs), nor ML investors, have sold $400 million worth of tokens during this time, whether individually or collectively. There has been no preemptive selling or breach of lockup agreements by insiders, and the circulating supply schedule has been followed.”
“2. While the original post did not share the wallet address, we suspect that the wallet likely belongs to an infrastructure partner complying with a token lockup schedule. All token lockups are overseen by qualified custodians and are continuously monitored by the Sui Foundation, ensuring compliance by this partner.”
Mysten Labs is the development company supporting the Sui blockchain.
SUI is currently trading at $2.02. The cryptocurrency ranks 25th by market capitalization and has seen a decline of over 10% in the last 24 hours.
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