The Sui Foundation has addressed recent allegations that insiders sold $400 million worth of SUI tokens during a price surge, firmly denying the claims. Rumors had circulated that employees, investors, and other stakeholders offloaded significant amounts of SUI during the rally, but the Foundation clarified in a post on X that no insiders, including those from Mysten Labs, had participated in such sales or violated token lockup agreements.
The Foundation pointed to an infrastructure partner as the likely source of the token sales, noting that the partner’s tokens are subject to a vesting schedule and that all lockups are managed by qualified custodians. The partner is in full compliance with these requirements.
SUI’s price has soared by more than 108% in the last 30 days, reaching a record high of $2.35 on October 13, with a market cap of approximately $6.18 billion, positioning it as the 21st-largest cryptocurrency. The accusations of insider selling were initially made by a pseudonymous analyst, Lightcrypto, who claimed wallets associated with the Sui Foundation were distributing tokens, sharing data from the 2023 initial coin offering.
Adeniyi Abiodun, co-founder of Mysten Labs, attributed SUI’s price surge to the influx of web3 projects, particularly in gaming, migrating to the Sui blockchain due to its better scalability and lower costs compared to other networks.
In related news, Circle’s USDC stablecoin is set to launch on the Sui network. Sui, an L1 blockchain designed for web3 applications, launched in 2023 with a focus on efficient decentralized application development and scalability. Mysten Labs also announced plans for its handheld gaming device, SuiPlay0X1, set to release in 2025, blending traditional PC games with blockchain-based titles, further pushing blockchain technology into the gaming sector.
