Sui’s price rally sparked allegations of a $400m insider
Sui Token's recent triple-digit rally has sparked accusations of selling among insider investors despite its impressive price gains.
Sui (SUI) is up more than 120% in the last month to trade at $2.25 at 10:13 am UTC on October 14. According to Cointelegraph data, the token is up more than 16% in the last week.
SUI/USD, 1-month chart. Source: Cointelegraph
However, despite Sui Token's strong price action, allegations of insider trading have been raised.
Wallets associated with SUI's initial coin offering (ICO) reportedly sold more than $400 million worth of tokens during the rally, according to anonymous crypto analyst Light, who posted the data on October 14 on X.
“Insiders (including what could be a large base wallet) have sold $400 million worth of tokens in the process, have already started selling material quantities at very low prices and are accelerating their sales at those higher levels.”
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Insiders who hold a large amount of cryptocurrency's supply can have a significant impact on the token's price. Large-scale sales from these owners can lead to low pressure.
Main SUI ICO wallet distribution. Source: Light
Pressure to sell more SUI?
The Sui token may see more selling pressure before the end of the month.
On October 23, $114 million worth of Sui tokens – equivalent to a 2.32% distribution supply – is set to open. According to Token Unlocks data, more than 28% of the total supply of SUI tokens is currently unlocked.
UI Cover Source: Token Unlocks
Of the total supply of SUI tokens, 14% is allocated to investors, 10% to Mysten Labs Treasury and 50% to community repositories, according to data from CoinCorp.
Distribution of SUI. Source: Coincarp
Cointelegraph has approached Sue for comment.
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Can the SUI rally continue despite the selloff?
Although the Sui Token may continue its momentum, the large-scale sale poses a serious threat to new investors.
According to Light, there is “only one end” of the tokens being sold to retail investors. The pseudo-crypto analyst added:
“It's uncomfortable that the people building this ecosystem, the people who know the value of this token best, are dumping hundreds of millions of dollars of tokens on uninformed buyers.”
The SUI token is currently up over 164% year-to-date (YTD).
Is Sui the new SOL? Why you shouldn't ignore it. Source: Cointelegraph
The SUI token is up over 164% year-to-date. Some analysts believe that Sui Network could become Solana's strongest competitor and emerge as the leading Layer-1 blockchain, according to research firm K33.
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