Sui Foundation Responds to Allegations of $400 Million Token Sale
The Sui Foundation has denied allegations that employees or investors sold $400 million worth of SUI tokens during the recent rise of the cryptocurrency.
The Foundation’s statement came after rumours spread that employees, investors and other stakeholders sold a significant amount during SUI’s recent price increase.
‘In this process, neither the Foundation, nor Mysten Labs (including Mysten Labs founders), nor Mysten Labs investors, individually or together, sold $ 400 million worth of tokens,’ the Sui Foundation said in a post on X.
‘Sui Foundation employees did not make any precautionary sales or violate lockdowns and the circulating supply programme,’ the foundation said.
Infrastructure Partner May Have Sold Tokens
The foundation said the likely source of token sales is an infrastructure partner.
The infrastructure partner’s tokens are subject to a vesting programme. And the Foundation said the tokens are locked by qualified custodian services providers.
The foundation confirmed that the partner continues to comply with these requirements.
The SUI price has increased by more than 180% in the last 30 days. Itreaches an all-time high of $2.35 on 13 October.
According to the latest data, SUI is the 21st largest cryptocurrency with a market capitalisation of approximately $6.18 billion.
Rumours of token sales by foundation insiders first emerged when the crypto analyst known as Lightcrypto claimed that insiders sold $ 400 million worth of SUI tokens during the rise.
Lightcrypto claimed that wallets linked to the Foundation distributed large amounts of tokens. The analyst shared data on the increased activity of wallets involved in SUI’s ICO in 2023.
Mysten Labs co-founder Adeniyi Abiodun said the reason for SUI’s appreciation is that Web3 projects. Especially in the gaming sector, are moving to the blockchain.
He stated that developers are turning to Sui due to scalability problems in other networks. The network’s performance is better and costs are low, so the popularity of the platform is increasing.
USD Coin (USDC) is Available on the Sui Network
Circle CEO Jeremy Allaire announced last month that the stablecoin USDC will be available on the network.
Launched in 2023, Sui is a layer 1 blockchain designed for Web3 applications, focusing on decentralised application development through parallel transaction execution.
Built with the Move programming language, the platform offers enhanced scalability and security for decentralised finance (DeFi) applications.
Mysten Labs, the developer of the Sui blockchain, announced plans to launch its portable gaming device SuiPlay0X1 in the first half of 2025.
The company started taking pre-orders for the device, priced at $599, on 3 September.
SuiPlay0X1 will support both PC games and games developed on the blockchain. Thus, it will take an important step towards integrating blockchain technology into the gaming industry.
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