Sui Network Responds to Allegations Over ‘Token Sale’

Sui Network came under public attention after an analyst stated that nearly $400M in tokens were being sold by’ insiders’ throughout the run-up. However, the foundation refuted such claims and stated that no such sales were made by them.

In their official X profile, the Sui Foundation stated that no insiders, such as employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors, have sold $400M worth of tokens. It added that all token releases and sales were carried out in accordance with the prescribed regulations. These tokens were used for funding future projects in the ecosystem. 

The confusion of the token sale cropped up after a crypto analyst under the pseudonymous name Lightcrypto stated that Sui ‘insiders’ had sold nearly $400 million worth of Sui during the token’s price surge. In his X post on Monday, the analyst pointed out that they had already begun selling at a low price. He added that a reputable foundation like Sui, stooping to such standards is quite uncomfortable. 

The Sui Foundation stated that the post did not have a proper wallet address, however, it added that the ‘token sale’ news was made by an infrastructure partner, whose tokens are under a lockup schedule. The foundation alleged that the token lockups are enforced by qualified custodians and it is being continuously monitored. Sui Foundation. 

Despite the allegations, the action of Sui addressed the concerns. It stated that the company is dedicated to transparency, and to generating sustainable value for all shareholders. While the  network remains growing and adding more liquidity to the ecosystem, market observers are waiting to see how Sui would manage the allegations and enhance its token economy in the future. 

Despite the optimistic movement in its token price, it is not evident whether the price rally for Sui will continue without further controversy. Sui surged 19% in the past week and is trading at $2.22 at the time of writing, losing 0.17% in the last 24 hours.