Sui Foundation Says Infrastructure Partner Likely Sold Hundreds of Millions of Dollars Worth of SUI

The team behind the Solana (SOL) challenger Sui is pushing back against rumors that project insiders have sold off $400 million worth of SUI tokens.

On Sunday, the pseudonymous crypto analyst known as Light claimed the layer-1 altcoin’s insiders were selling off the token, pointing to a graph charting major SUI ICO wallet distribution.

“It does not bring comfort that the people building this ecosystem, the people who arguably know this token’s value best, are unloading hundreds of millions of dollars of token into less informed buyers chasing momentum. As some of us have learned, whether now or later, as with most of these games where retail buys from insiders, there is only one ending.”

However, the Sui Foundation says the sell-off came from an “infrastructure partner,” not an “insider.”

“1. No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors, have sold $400M worth of tokens during this period, either individually or combined. Insiders have not been involved in any preemptive selling or violation of lockups and the circulating supply schedule.

2. While the poster did not provide the wallet address, we believe the likely owner of the wallet is an infrastructure partner who owns tokens under a lockup schedule. All token lockups are enforced by qualified custodians and continuously monitored by Sui Foundation, and this partner is in compliance.”

Mysten Labs is a development firm backing the Sui blockchain.

SUI is trading at $2.02 at time of writing. The 25th-ranked crypto asset by market cap is down more than 10% in the past 24 hours.

Generated Image: DALLE3