- The Sui Foundation has found itself at the center of controversy, denying allegations of substantial token sales by insiders worth $400 million.
- The foundation has witnessed a significant increase in network activity, propelled by the growing popularity of investor-to-investor trading.
Sui, the single-layer blockchain offering industry-leading performance and infinite horizontal scaling, has made headlines due to allegations of $400 million worth of insider token sales. These accusations come from a channel analyst@lightcryptowhich expressed concern about a possible massive sale of tokens by insiders.
Clarification on allegations of $400 million token sale
The SUI Foundation vehemently denied these accusations made by the on-chain sleuth on X. In his defensethe foundation clarified that no insider (including its own staff, Mysten Labs employees, or Mysten Labs investors) sold $400 million worth of tokens during SUI’s recent vertical ascent. The Foundation reassured the public that no one had engaged in early token sales or violated agreed lock-up periods or supply circulation rules.
Furthermore, the foundation unequivocally stated that all stakeholders have fully adhered to the established blocking schedules and token circulation policies. She also clarified that these accusations are unfounded and that the wallet in question likely belongs to an infrastructure partner whose tokens are held securely and are not available for sale.
The analyst added that the situation where insiders sell tokens to retail investors inevitably leads to a negative outcome.
SUI reaches new heights
This clarification comes as SUI, the blockchain’s native cryptocurrency, reached a new all-time high of $2.34 on October 13, 2024. Another notable advancement is the recent introduction of native USDC on the SUI network. This launch paves the way for the development of a wider range of financial products in the DeFi sector, allowing users to access digital dollar savings without relying on traditional banking systems.
With USDC now natively integrated, there is no longer a need for bridging solutions like Wormhole, which previously helped facilitate cross-chain transactions.
These trends indicate that Sui is positioning itself as a strong competitor to established platforms such as Solana. The network’s ability to attract such high levels of activity and investment reflects the growing confidence of users and investors in its long-term potential. Currentlythe SUI token is trading at $2.23, just 4.30% off its all-time high of $2.34.
