As a seasoned crypto investor with a knack for separating fact from fiction, I find myself intrigued by the recent SUI insider trading allegations. With years of experience under my belt, I’ve learned to approach such claims with a healthy dose of skepticism and a keen eye for detail.
Contrary to claims circulating, the charitable group, Sui Foundation – responsible for the development of the layer-1 blockchain and its ecosystem – has refuted accusations that insiders have offloaded $400 million worth of the native token, SUI, since the asset’s impressive surge in value began.
Based on a tweet from the foundation, it appears that the wallet address associated with the sales might be linked to one of their infrastructure partners, and the timing of the token distributions coincides with Sui’s scheduled lock-ups.
$400M SUI Insider Trading Allegations
On October 14th, an anonymous crypto trader and analyst known as Lightcrypto shared on X platform their observation of a puzzling event over the past few weeks: the significant upward trend of SUI. Lightcrypto expressed doubts about the reasons for this surge from a risk-reward standpoint, arguing that the idea of SUI mirroring Solana’s (SOL) trajectory is no longer tenable.
The crypto expert raised doubts about whether SUI had demonstrated only a fourth of Solana’s possible value, given that its fully diluted valuation (FDV) was around $23 billion when questioned, implying a quarter of Solana’s valuation at the time.
Data from CoinMarketCap shows Sui’s FDV has fallen to $21.33 billion at the time of writing. The asset has rallied 96% in the last 30 days and roughly 10% in the past week. However, the insider trading allegations pulled the coin down 5% in the past 24 hours to $2.13.
Lightcrypto posits that the rise in Sui is primarily due to the cryptocurrency market lacking successful projects and finding a questionable winner in Sui. As per this trader, key figures such as large foundation wallets, are reportedly responsible for selling approximately $400 million worth of SUI tokens throughout the surge. They started offloading the tokens at lower prices initially and have escalated their selling as the price surged.
It’s troubling that those responsible for constructing this ecosystem, individuals who presumably understand the worth of this token better than most, are selling hundreds of millions of dollars of the token to less knowledgeable investors who are driven by the token’s popularity, according to Lightcrypto.
SUI Sales by Compliant Partner
As a researcher, I would like to clarify that neither I, nor any other insider, employee, or investor associated with SUI, such as those from our core contributor, Mysten Labs, have been involved in early selling of the coin or any breach of its scheduled supply distribution.
Instead, because Lightcrypto didn’t pinpoint the wallet address for the transactions, it’s presumed that one of the compliant associates of the foundation might be performing these actions. Importantly, the foundation keeps track of and ensures the set schedule, a responsibility overseen by competent custodians.
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2024-10-15 20:44