Sui Foundation Dismisses $400 Million Token Sales Allegations, Denies Insider Dumping

B. Ali
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

The Sui Foundation has denied claims that its employees or Mysten Labs insiders sold $400 million of SUI tokens. Online allegations suggested that people involved in the Sui blockchain development had violated lockup agreements and were pre-selling.

The foundation claimed that qualified custodians are in charge of enforcing and monitoring all token lockups.

$400 Million in Token Sales

The drama started when a social media user, Light Crypto, accused the Sui Foundation of allowing employees and insiders from Mysten Labs to sell a lot of SUI tokens, $400 million worth, during a restricted period.

The post said they were selling at lower prices, “dumping on retail”. The post also asked why SUI’s price was going up so fast and said SUI’s potential is only a fraction of Solana’s based on its current price.

This sparked a lot of discussion in the Sui community and questions if the foundation or its partners had violated token lockup agreements, which restrict when and how early investors or insiders can sell tokens.

Sui Foundation’s Response

On October 14, the Sui Foundation released a statement on X (formerly Twitter) and denied the allegations strongly. Neither the foundation nor Mysten Labs employees were involved in the $400 million sale or any pre-selling activities.

Regarding the wallet linked to these sales, the foundation said the wallet belongs to an infrastructure partner, not an insider. To ensure compliance, custodians are keeping an eye on the partner’s token lockup schedule.

The Sui Foundation stated that this partner is in compliance with all token lockups because qualified custodians enforce them. They also said they take these accusations seriously and will remain transparent in their ecosystem.

SUI Token’s Market Performance

Although the Sui Foundation denied any wrongdoing, the allegations have brought back the conversation around the SUI token’s performance in the market.

Light Crypto’s post questioned the token’s price increase and said SUI’s long-term potential is only a fraction of Solana’s. The post also raised questions on the governance and operational practices of SUI token management.

But the Sui Foundation’s quick response is to calm investors that no rules were broken and all lockup agreements are still in place.

Summary:

  • Sui Foundation said no $400 million token sale involved insiders.
  • Pre-selling by insiders was denied; the foundation said lockups are being enforced.
  • The wallet in question belongs to a partner, not an insider, and is under a lockup schedule.

The quick response from the Sui Foundation shows they are serious about transparency but the allegations brought to light the governance of SUI tokens and its position in the crypto space.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.