Sui Foundation denies $400M insider sale allegations, clarifying the legitimacy of token circulation and emphasizing compliance with lock-up agreements.
The Sui Foundation addressed allegations of $400 million in insider token sales during the recent price surge of Sui tokens. A pseudonymous crypto analyst, Lightcrypto, made these claims on social media. According to Lightcrypto, these insiders had been selling massive quantities of Sui tokens during the price surge, which they claimed called into question the token’s value and the honesty of the market.
In response, Sui Foundation came out on Monday to dismiss any such insider activity. To their defense, they added that neither the Foundation’s employees nor the investors, including Mysten Labs, sold $400 million worth of tokens during the surge. The organization also pointed out that all involved parties, including the founders and investors of Mysten Labs, had complied with the token lock-up period. The Foundation also wanted to ensure the public that none of its members had breached the condition of any pre-emptive selling.
Sui Foundation Highlights Transparency in Token Circulation Practices
Although the allegations pointed to the wallets involved in Sui’s ICO, the Foundation assumed that the actual owner of the wallet might be an infrastructure partner but not an insider. They pointed out that this partner holds tokens under lockup agreements, and the Sui Foundation scrutinizes all lockup agreements. The Foundation pointed out that such lock-up schedules are implemented under the supervision of a qualified custodian who guarantees that all the terms have been complied with.
The Sui Foundation also responded to questions about the recent price spike. While the accusations raised doubts about the possibility of using blockchain to justify the value of the token, the Foundation stayed optimistic about the plan. They assured the community that the expansion of the Sui blockchain ecosystem is grounded on sound, sustainable strategies with good management systems in place.
Therefore, the Sui Foundation denied the allegations of insider selling and ensured the market that all operations concerning the token circulation were legal. They stressed the importance of the ecosystem’s openness and freedom from corrupt practices. The Foundation’s statement aimed to clarify any confusion. Furthermore, it will restore confidence in the Sui blockchain and its ongoing development.
